AC555 Week 5 Home work
12-17 (Objectives 12-1, 12-4) The following questions concern the characteristics of IT systems. Choose the best response.
a. An IT system is designed to ensure that management possesses the information it needs to carry out its functions through the integrated actions of
(1) data-gathering, analysis, and reporting functions.
b. Which of the following conditions will not normally cause the auditor to question whether material misstatements exist?
(1) Bookkeeping errors are listed on an IT-generated error listing.
c. As general IT controls weaken, the auditor is most likely to (3) expand testing of automated application controls used to reduce control risk to cover greater portions of the fiscal year under audit.
d. Which of the following is an example of an application control? (3) The sales system automatically computes the total sale amount and posts the total to the sales journal master file.
12-18 (Objectives 12-2, 12-4) The following questions concern auditing complex IT systems. Choose the best response.
a. Which of the following client IT systems generally can be audited without examining or directly testing the computer programs of the system?
(1) A system that performs relatively uncomplicated processes and produces detailed output.
b. Which of the following is true of generalized audit software programs? (3) They each have their own characteristics that the auditor must carefully consider before using in a given audit situation.
c. Assume that an auditor estimates that 10,000 checks were issued during the accounting period. If an automated application control that does a limit check for each check request is to be subjected to the auditor’s test data approach, the sample should include (2) a number of test items determined by the auditor to be sufficient under the circumstances.
d.