Auditing Expenditure Cycle Accounts
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Questions and Answers

What should the auditor assess to protect the file from being read or changed?

  • Physical controls
  • Output controls
  • Segregation of duties
  • Password controls (correct)

Which of the following is a key aspect of computer access controls?

  • Data encryption (correct)
  • Physical controls
  • Segregation of duties
  • Output controls

Which control includes managing access to operating systems, networks, and databases?

  • Access controls (correct)
  • Segregation of duties
  • Output controls
  • Physical controls

What is an example of a physical control mentioned in the text for safeguarding assets?

<p>Segregation of inventory control from the warehouse. (B)</p> Signup and view all the answers

Why is it important to segregate the general ledger and accounts payable from cash disbursements?

<p>To safeguard inventory and cash (D)</p> Signup and view all the answers

Which control helps prevent inventory removal from the warehouse and adjustments to accounting records?

<p>Segregation of inventory control from the warehouse. (A)</p> Signup and view all the answers

What must the auditor do in addition to tests of controls to achieve audit objectives?

<p>Perform substantive tests (D)</p> Signup and view all the answers

What affects the nature and extent of substantive tests performed by the auditor?

<p>Quality of internal controls (A)</p> Signup and view all the answers

What is required for the auditor to understand when performing substantive tests involving data extraction?

<p>Systems and controls that produced the data (C)</p> Signup and view all the answers

What does the discussion presume the auditor is using for performing audit tests?

<p>ACL (Audit Command Language) (C)</p> Signup and view all the answers

What must the auditor verify before analyzing a file?

<p>Working with the correct version of the file (A)</p> Signup and view all the answers

Why is it important for auditors to understand file backup procedures?

<p>To ensure they are working with original files (D)</p> Signup and view all the answers

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?

<p>To test the correctness of programmed procedures (D)</p> Signup and view all the answers

Why is the integrity of standing data an important consideration during testing?

<p>A correct functioning payroll application depends on valid data (C)</p> Signup and view all the answers

What controls contribute to ensuring the integrity of the authorized employee file?

<p>Encryption of employee records (B)</p> Signup and view all the answers

In the context of testing physical controls, what is the role of process controls?

<p>To update files securely (C)</p> Signup and view all the answers

How do process controls differ based on the level of computer technology in place?

<p>By varying in the extent of automation (A)</p> Signup and view all the answers

What is the significance of restricted access to additions and deletions in the authorized employee file?

<p>Ensures data integrity (A)</p> Signup and view all the answers

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