1. To obtain evidence that online access controls are properly functioning, an auditor most likely would

a. Create checkpoints at periodic intervals after live

data processing to test for unauthorized use of thesystem.b. Examine the transaction log to discover whetherany transactions were lost or entered twice due to asystem malfunction.c. Enter invalid identification numbers or passwordsto ascertain whether the system rejects them.d. Vouch a random sample of processed transactions10 assure proper authorization.

2. An auditor most likely would introduce test data into a computerized payroll system to test controls related to the

a. Existence of unclaimed payroll checks held by supervisors.b. Early cashing of payroll checks by employees.c. Discovery of invalid employee LD. numbers.d. Proper approval of overtime by supervisors.

3. Which of the following is not among the errors that an auditor might include in the test data when auditing a client's computer system?

a. Numeric characters in aIphanumeric fields.b. Authorized code.

c. Differences in description of units of measure.d. Illogical entries in fields whose logic is tested byprogrammed consistency checks.

4. Which of the following computer-assisted auditingtechniques allows fictitious and real transactions to beprocessed together without cJient operating personnel beingaware of the testing process?a. Integrated test facility.b. Input controls matrix.c. Parallel simulation.d. Data entry monitor.

5. Which of the following methods of testing application controls utilizes a generalized audit software package prepared by the auditors'?

a. Parallel simulation.b. Integrated testing facility approach.c. Test data approach.d. Exception report tests.

6. In creating lead schedules for an audit

engagement, a CPA often uses automated workpaper

software. What client information is needed to begin this process?a. Interim financial information such as third quarter sales, net income, and inventory and receivables balances.b. Specialized journal information such as the invoice and purchase order numbers of the last few sales and purchases of the year.

c. General ledger information such as account numbers prior year account balances. and current year unadjusted information.d. Adjusting entry information such as deferrals and accruals, and reclassification journal entries.

7. Using microcomputers in auditing may affect the methods used to review the work of staff assistants becausea. The audit fieldwork standards for supervision maydiffer.b. Documenting. the supervisory reviewmay requireassistance of consulting services personnel.c. Supervisory personnel may not have anunderstanding of the capabilities and limitations ofmicrocomputers.d. Working paper documentation may not containreadily observable detail Is of calculations.

8. An auditor would least likely use computer

software toa. Access client data files.b. Prepare spreadsheets.c. Assess computer control risk.d. Construct parallel simulations.

9. A primary advantage of using generalized audit software packages to audit the financial

statements of a client that uses a computer system is that the auditor may

a. Access information stored on computer files whilehaving a limited understanding of the client'shardware and software features.b. Consider increasing the use of substantive tests oftransactions in place of analytical procedures.c. Substantiate the accuracy of data through self checkingdigits and hash totals.d. Reduce the level of required tests of controls 10 arelatively small amount.

10. Auditors often make use of computer programs that perform routine processing functions such as sorting and merging. These programs are made available by electronic data processing companies and others and are specifically referred to as

a. Compiler programs.b. Supervisory programs.c. Utility programs.d. User programs.