IT Audit Basics

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Which phase of the audit focuses on evaluating whether transactions or events have been handled effectively and efficiently?

System built-in controls

Substantive Testing (correct)

Test of Controls

Control Risk Assessment

What is the purpose of the Test of Control phase in an IT environment?

To evaluate the effectiveness of controls in preventing or detecting material misstatements (correct)

To evaluate the efficiency of the system

To assess the maximum level of control risk

To determine whether a control is working

Which cycle is NOT included in the Test of Control phase?

Expenditure cycle

Production cycle (correct)

Revenue and collection cycle

Financing and investing cycle

What is the purpose of the Substantive Test phase in an audit?

To obtain relevant evidence for making a final judgment on the extent of losses or account misstatements Signup and view all the answers

Which assertion is NOT evaluated in the Substantive Test phase?

Completeness Signup and view all the answers

What does CR stand for in the context of audit risk assessment?

Control Risk Signup and view all the answers

What is the relationship between control risk and detection risk?

Inverse relationship Signup and view all the answers

Which phase of the audit is the most expensive?

Substantive Testing Signup and view all the answers

What does NTE stand for in the context of Substantive Testing?

Nature, Timing, and Extent Signup and view all the answers

What is the purpose of the Test of Control phase in an audit?

To evaluate the effectiveness of controls in preventing or detecting material misstatements Signup and view all the answers

Which of the following statements is true about IT Audit?

IT Audit is conducted by auditors who use technical skills and knowledge to audit through the computer system. Signup and view all the answers

What does CAATs stand for?

Computer-Assisted Audit Tools Signup and view all the answers

Which certification is subject to ethics and guidelines that impose professionalism in the auditor's duties?

CISA Signup and view all the answers

What are the steps involved in IT Audit planning?

Audit Planning, Test of Controls, Substantive Testing, Issuance of Audit Report Signup and view all the answers

What does CISA stand for?

Certified Information Systems Auditor Signup and view all the answers

What is the purpose of reviewing an organization's policies, procedures, and structure in IT Audit planning?

To understand the organization's management control and information flow. Signup and view all the answers

What do CAATs and CAATTs allow auditors to do?

View audit trails that are typically invisible to people. Signup and view all the answers

What is the significance of modern information systems in IT Audit?

Modern information systems are the primary source of internal information. Signup and view all the answers

What is the main characteristic of IT Audit?

IT Audit is risk-based. Signup and view all the answers

What does ATSI stand for in IT Audit steps?