Auditing MCQs

Which of the following CAATs allow fictitious transactions planted by the auditor to be processed along with real ones on client’s system?

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Looking for the answer to the question below related to EDP Audit ? Which of the following CAATs allow fictitious transactions planted by the auditor to be processed along with real ones on client’s system?  Options: a) Integrated test facility b) Test data approach c) Generalised audit software d) Parallel simulation   The Correct Answer … Read more

Which of the following statements is not true of the test data approach in a test of computerised accounting system?

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Looking for the answer to the question below related to EDP Audit ? Which of the following statements is not true of the test data approach in a test of computerised accounting system?  Options: a) Test data tests only those controls which the auditor wishes to rely b) Test data should consist of data related … Read more

Which of following will not affect audit in a CIS environment?

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Looking for the answer to the question below related to EDP Audit ? Which of following will not affect audit in a CIS environment?  Options: a) The objective of expression of opinion on financial statements b) Compliance procedures adopted by the auditor c) Performance of substantive procedures d) Evaluation of inherent risk and control risk … Read more

The completeness of “wages” figure can be tested by comparing the number of time cards to be processed with transaction on wages sheet. This type of control technique is called

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Looking for the answer to the question below related to EDP Audit ? The completeness of “wages” figure can be tested by comparing the number of time cards to be processed with transaction on wages sheet. This type of control technique is called  Options: a) check total b) control total c) occurrence correction d) check … Read more

Which of the following activities would most likely be performed by EDP department?

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Looking for the answer to the question below related to EDP Audit ? Which of the following activities would most likely be performed by EDP department?  Options: a) Authorising transactions b) Parity checks c) Distributing output d) Correction of transactional errors   The Correct Answer Is: c) Distributing output   Conclusion I hope you got … Read more

General controls will be ineffective when EDP department-

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Looking for the answer to the question below related to EDP Audit ? General controls will be ineffective when EDP department-  Options: a) Participates in computer software acquisition decisions b) Design Documentation for computerized operations. c) Originate changes in master files. d) Provide physical security for programme files.   The Correct Answer Is: c) Originate … Read more

Erroneous data has been detected by computer program controls. It has been excluded from processing and printed separately “Error Report”. Who should most probability by review and follow up on this report?

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Looking for the answer to the question below related to EDP Audit ? Erroneous data has been detected by computer program controls. It has been excluded from processing and printed separately “Error Report”. Who should most probability by review and follow up on this report?  Options: a) system, analyst b) Data control group c) Programmer … Read more

When computer programme or files can be accessed from terminals access can be limited to authorized individuals by__

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Looking for the answer to the question below related to EDP Audit ? When computer programme or files can be accessed from terminals access can be limited to authorized individuals by__  Options: a) appointing a librarian b) controlling passwords c) appointing EDP auditor d) Both (a) and (b)   The Correct Answer Is: d) Both … Read more

To avoid invalid data input a bank added an extra number at the end of each account number and subjected the new number to an algoritham. This techniques is known as

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Looking for the answer to the question below related to EDP Audit ? To avoid invalid data input a bank added an extra number at the end of each account number and subjected the new number to an algoritham. This techniques is known as  Options: a) Dual read b) Test for reasonableness c) Check digit … Read more

Which of the following statement is not distinguishing feature for computer based processing and manual processing?

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Looking for the answer to the question below related to EDP Audit ? Which of the following statement is not distinguishing feature for computer based processing and manual processing?  Options: a) Errors in a CIS environment are less systemic as compared to errors in manual processing b) The potential for human error in the CIS … Read more