IIA IIA-CIA-Part2 Quiz 131 Topic 1 Questions 651-655

Question: 1

An internal auditor is observing cash sales to determine whether customers are given written receipts. The objective of this test is to ensure that

ACash received equals the total of the receipts.

BCustomers are charged authorized prices.

CCash balances are correct.

DAll cash sales are recorded.

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Question: 2

Which of the following statements accurately describes the impact that automation has on

the controls normally present in a manual system?

ATransaction trails are more extensive in a computer-based system than in a manual system because there is always a one-for-one correspondence between data entry and output.

BResponsibility for custody of information assets is more concentrated in user departments in a computer-based system than it is in a manual system.

CControls must be more explicit in a computer-based system because many processing points that present opportunities for human judgment in a manual system are eliminated.

DThe quality of documentation becomes less critical in a computer-based system than it is in a manual system because data records are stored in machine-readable files.

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Question: 3

A firm has recently converted its purchasing cycle from a manual process to an online computer system. Which of the following is a probable result associated with conversion to the new automatic system?

AProcessing errors are increased.

BThe firm's risk exposures are reduced.

CProcessing time is increased.

DTraditional duties are less segregated.

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Question: 4

A small client recently put its cash disbursements system on a server. About which of the following internal control features would an auditor most likely be concerned?

AProgramming of the applications are in Visual Basic rather than Java.

BThe server is operated by employees who have cash custody responsibilities.

COnly one employee has the password to gain access to the cash disbursement system.

DThere are restrictions on the amount of data that can be stored and on the length of time that data can be stored.

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Question: 5

Which of the following statements most likely represents a disadvantage for an entity that keeps data files on a server rather than on a manual system?

AAttention is focused on the accuracy of the programming process rather than errors in individual transactions.

BIt is usually easier for unauthorized persons to access and alter the files.

CRandom error associated with processing similar transactions in different ways is usually greater.

DIt is usually more difficult to compare recorded accountability with the physical count of assets.

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IIA IIA-CIA-Part2 Quiz:131 Topic:1 Questions:651-655