Podcast
Questions and Answers
Auditors only seek evidential matter that refutes management assertions.
Auditors only seek evidential matter that refutes management assertions.
False
The task of the auditor is to establish audit objectives, design procedures, and gather evidence that refutes managements assertions.
The task of the auditor is to establish audit objectives, design procedures, and gather evidence that refutes managements assertions.
False
Assessing materiality in an audit is solely based on objective criteria.
Assessing materiality in an audit is solely based on objective criteria.
False
Substantive tests in an audit determine whether internal controls are functioning properly.
Substantive tests in an audit determine whether internal controls are functioning properly.
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The basic components of an audit include Existence or Occurrence, Completeness, and Reliability.
The basic components of an audit include Existence or Occurrence, Completeness, and Reliability.
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In the IT environment, auditors gather evidence relating to the reliability of computer controls and the contents of databases processed by manual procedures.
In the IT environment, auditors gather evidence relating to the reliability of computer controls and the contents of databases processed by manual procedures.
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Financial auditing ensures that an organization's internal controls and policies are in compliance with industry requirements only.
Financial auditing ensures that an organization's internal controls and policies are in compliance with industry requirements only.
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CIS audit focuses on the physical aspects of an organization's information system.
CIS audit focuses on the physical aspects of an organization's information system.
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In financial audits, GAAS is applied to ensure the accuracy of financial statements.
In financial audits, GAAS is applied to ensure the accuracy of financial statements.
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IT audits are typically not a significant component of all external (financial) and internal audits.
IT audits are typically not a significant component of all external (financial) and internal audits.
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Conducting an audit in an IT environment does not require a systematic approach.
Conducting an audit in an IT environment does not require a systematic approach.
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A logical framework for conducting an audit in an IT environment is not considered critical to help the auditor identify all important processes and data files.
A logical framework for conducting an audit in an IT environment is not considered critical to help the auditor identify all important processes and data files.
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Study Notes
Auditor Objectives and Procedures
- Auditors aim to gather evidence that contradicts management assertions, not just to confirm them.
- Establishing clear audit objectives and designing appropriate procedures are crucial for effective evidence collection.
Materiality in Audits
- Materiality assessment relies on objective criteria, guiding the auditor in determining the significance of findings.
Substantive Tests
- Substantive tests assess whether internal controls are operating effectively and accurately.
Basic Audit Components
- Key components of an audit include:
- Existence or Occurrence: Verifying the presence of items or events.
- Completeness: Ensuring all relevant information is accounted for.
- Reliability: Confirming the dependability of data.
IT Environment and Evidence Gathering
- In IT audits, evidence is collected related to the reliability of computer controls and the integrity of databases processed through manual procedures.
Compliance in Financial Audits
- Financial auditing focuses on ensuring internal controls and policies align with industry requirements, safeguarding authoritative compliance.
CIS Audit Focus
- The focus of a CIS audit lies in the physical aspects and security of an organization’s information systems.
Use of GAAS
- Generally Accepted Auditing Standards (GAAS) are applied in financial audits to validate the accuracy of financial statements.
Role of IT Audits
- IT audits are generally not a major aspect of external and internal audits, but they provide vital insights when conducted.
Audit Systematic Approach
- A systematic approach in auditing within an IT environment is essential, contrary to the assertion that it is not necessary.
Importance of Logical Framework
- A logical framework is critical during IT audits to ensure all vital processes and data files are identified effectively.
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Description
Explore the differences between Financial Auditing and CIS Audit, focusing on internal controls, regulations, and compliance standards. Learn how GAAS is used to ensure accuracy in financial statements.
