18 Questions
What should the auditor assess to protect the file from being read or changed?
Password controls
Which of the following is a key aspect of computer access controls?
Data encryption
Which control includes managing access to operating systems, networks, and databases?
Access controls
What is an example of a physical control mentioned in the text for safeguarding assets?
Segregation of inventory control from the warehouse.
Why is it important to segregate the general ledger and accounts payable from cash disbursements?
To safeguard inventory and cash
Which control helps prevent inventory removal from the warehouse and adjustments to accounting records?
Segregation of inventory control from the warehouse.
What must the auditor do in addition to tests of controls to achieve audit objectives?
Perform substantive tests
What affects the nature and extent of substantive tests performed by the auditor?
Quality of internal controls
What is required for the auditor to understand when performing substantive tests involving data extraction?
Systems and controls that produced the data
What does the discussion presume the auditor is using for performing audit tests?
ACL (Audit Command Language)
What must the auditor verify before analyzing a file?
Working with the correct version of the file
Why is it important for auditors to understand file backup procedures?
To ensure they are working with original files
What is the purpose of creating a dummy authorized employee file and a corresponding attendance file with both matching and non-matching records for testing?
To test the correctness of programmed procedures
Why is the integrity of standing data an important consideration during testing?
A correct functioning payroll application depends on valid data
What controls contribute to ensuring the integrity of the authorized employee file?
Encryption of employee records
In the context of testing physical controls, what is the role of process controls?
To update files securely
How do process controls differ based on the level of computer technology in place?
By varying in the extent of automation
What is the significance of restricted access to additions and deletions in the authorized employee file?
Ensures data integrity
Learn about the audit objectives related to expenditure cycle accounts and the substantive tests commonly performed. Understand how the quality of internal controls impacts the nature and extent of substantive tests. Discover the key tests performed by auditors in the expenditure cycle.
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