Aug 17- CAAT_formatted

Number: 000-000
Passing Score: 600
Time Limit: 60 min
File Version: 1.0
Exam A

QUESTION 1
CCTV installed in the server room is part of ......................

A. General Control
B. Application Control
C. None of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 2
Check digits fall under the category of ....................

A. Field level test

B. Record level test
C. Group of records test
D. None of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 3
White box test falls under the category of ...............

A. Static analysis
B. Dynamic analysis
C. Big bang test
D. Incremental test

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 4
As audit productivity tools group ware is used for ..............

A. Audit planning and tracking

B. Communication
C. Resource management
D. Data management

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 5
Under .............. the auditors " think like a crook"

A. Cyber audit
B. Audit by simulation of errors and frauds
C. Software development audit
D. Information assets security and auditing

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 6
Logical comparisons fall under ..............

A. Identifying items of audit interest

B. Audit mathematics
C. Data analysis
D. System validation

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 7
Taking live transaction data and reprocessing through a program that is not live is called ..............

A. Source code review

B. Parallel programming
C. Parallel processing
D. Transaction tagging

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 8
Continuous monitoring of transaction data to extract anomalies in real time is possible through ..............

A. Audit hooks
B. Transaction tagging
C. Audit trail control
D. Log file review

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 9
.............................is used to follow a selected transaction through the entire application from input till output.

A. Audit hooks
B. Transaction tagging
C. Test data generation
D. Continuous monitoring

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 10
In IDEA sampling can be done using ..............

A. Random technique
B. Systematic technique
C. Stratified technique
D. All of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 11
In system development life cycle "RAD" is used while.................

A. Requirement definition
B. System design
C. Development
D. None of the above

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:
QUESTION 12
In Benford's law the occurrence of zero is predicted as...........

A. Most occurring
B. Least occurring
C. Not predicted
D. Don't Know

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 13
In MS Excel sampling command is kept under..............

A. Conditional formatting
B. Data analysis
C. Formulas
D. All of the above

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 14
Auditor's independence is compromised while working as ..............

A. Control consultant
B. Independent reviewer
C. None of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 15
Auditor's principal objective in software development audit is ..............

A. To ensure that investment will produce value for money

B. To ensure that the system development meets internal control requirements
C. Both of the above

Correct Answer: C
Section: (none)
Explanation
Explanation/Reference:

QUESTION 16
In system development, while determining the level of auditor's involvement, lack of development standards fall
under ..............

A. Process risk
B. Application risk
C. General risk
D. Development risk

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 17
In system development process, user acceptance testing falls under.................

A. Requirement definition phase

B. System design phase
C. Development phase
D. Implementation phase

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 18
A/An ------------- is the official notice that the firm sends to its customers to advise them to the amount of money
that is owed.

A. Invoice
B. Bill
C. A and B
D. None of the above

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 19
In the Tally Software, the ------------ directory stores all data entered by the user.

A. Bin
B. Data
C. Sub
D. None of the above

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 20
The value of the inventory is included as an asset on the balance sheet.

A. True
B. False
C. Don't know
D. Shall answer later

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 21
Import and Export of data between Tally and other programs is possible only through ______ Program.

A. Tally ODBC
B. JDBC
C. Tally INI
D. Tally IMP

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 22
The day book contains transactions relating to ____________

A. Income or expenditure
B. Sales or purchase
C. Asset or liability
D. Profit or loss

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:
QUESTION 23
What is the function of the option `Group Behaves Like sub-ledger'?

A. Transactions cannot be passed in the group

B. Sub Groups cannot be created.
C. Displays grouped value during detailed report.
D. Will not be displayed in any report.

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 24
_______ are units to which costs / expenses are allocated

A. Cost Centres
B. Profit Centres
C. Cost Categories
D. Stock Category

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 25
The transactions entered in foreign currency are _______ for data analysis.

A. Retained in foreign currency without being converted to base currency

B. Maintained in a separate menu called `Exception Report'
C. To be re-entered in Journal
D. Converted to base currency as per the exchange rate specified

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 26
If you enable tally vault, Tally _________ the company data

A. locks
B. splits
C. combines
D. encrypts

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 27
In INV-001, 001 is called

A. Prefix
B. Suffix
C. Start Number
D. Start Alphabet

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 28
Which of the following types of transactions usually does require Ajusting Entriy

A. Payroll accrual
B. Unearned revenue
C. Prepaid insurance
D. Bank Transfer

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 29
In a subsidiary ledger

A. Summary of Customer/Supplier is kept

B. Details of Customer/Supplier is kept
C. Details of subsidiary company is kept
D. In modern accounting system we no longer use subsidiary ledgers

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 30
____________is used to print the primary books of accounts like the Cash and Bank Books, Account Ledgers,
Sales and Purchase Registers instead of selection the accounts one at a time.

A. Various-Accounts Printing
B. All Accounts Printing
C. Multi-Account Printing
D. Import Accounts Printing

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 31
_____________is the facility in accounting packages which allows the privileged user to log in as an
administrator and perform administrative tasks like viewing the audit log.

A. Password Control
B. Encryption
C. Vault Password
D. Authorization signature

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 32
At a minimum, we can categorize the accounts into.........................

A. Assets, Liabilities, Equity, Income and Expenses

B. Balance Sheet Accounts and Profit & Loss Accounts
C. Assets, Liabilities, Income and Expenses
D. Trading and Non-Trading

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 33
The major divisions of a Chart of Accounts are.........................

A. Assets, Liabilities, Equity, Income, Cost of Goods Sold and Expenses

B. Balance Sheet, Profit and Loss Accounts and Cash Flow
C. Balance Sheet, Profit and Loss Accounts and Trial Balance
D. Debits and Credits

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:
QUESTION 34
The general ledger is.............................

A. where financial information from all closing entries of a business is consolidated

B. where financial information from all opening entries of a business is consolidated
C. where financial information from all adjustment entries of a business is consolidated
D. where financial information from all aspects of a business is consolidated

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 35
ODBC stands for...............................

A. Online Database Connectivity

B. Optional Database Connectivity
C. Open Database Connectivity
D. Open Database Connector

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 36
If you enable tally vault, Tally _________ the company data

A. locks
B. splits
C. combines
D. encrypts

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 37
Tally data can be imported into MS Excel using..................................

A. MS ACCESS
B. ODBC
C. SQL Server
D. Oracle
Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 38
QuickBooks is a/an _____________

A. CRM Software
B. Accounting Software
C. Word Processing Software
D. Online Collaboration Software

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 39
______________are the only default ledgers in Tally.

A. Cash and Profit & Loss Accounts

B. Income and Expense Accounts
C. Opening Balance Equity and Cash Accounts
D. All of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 40
Debit always increase the account balance.................

A. TRUE
B. FALSE
C. Don't Know
D. Tell you later

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:
 July-20_45 hour ITT Exam

Number: 000-000
Passing Score: 600
Time Limit: 60 min
File Version: 1.0

The Institute of Chartered Accountants of Nepal

Assessment test for 45 hours of IT Training

Full Marks: 800

Pass Marks: 480

Total Number of Questions: 40

Time Available to Answer the Questions: 1 Hour

{You are required to answer both the Multiple Choice Questions and Practical Question in the time allotted}
Exam A

QUESTION 1
Audit objectives are formal statements that describe the

A. Outcome of the audit

B. purposes of the audit
C. audit report
D. risk assessment

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 2
The auditor selects and uses computer-aided audit tools to

A. Issue qualified audit report because after using the CAAT tools frauds are most likely to discovered
B. gather information and conduct the planned audit tests
C. keep up with the contemporary technology
D. all of the above

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 3
Using ODBC, it is possible to import Tally data into excel

A. only if the latest version of Tally is installed

B. only if Tally is running with ODBC server
C. only if you know how to import the database
D. Tally data cannot be imported in Excel.

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 4
In the context of Concurrent Audit Techniques, SCARF stands for

A. SystemsControl And Review File

B. SystemsControl AuditReview File
C. SystematicControl And Review File
D. SystemsConcurrency After Reviewing File
Answer B
Correct Answer:
Section: (none)
Explanation

Explanation/Reference:

QUESTION 5
In Cluster sampling

A. the items in the population are first classified into separate subgroups, or strata, by the auditor on the basis
of one or more important characteristics. Then a simple random or systematic sample is taken separately
from each stratum
B. the population items occur naturally in subgroups. Entire subgroups are then randomly sampled
C. the items are selected from the population at a uniform interval of a listed order, such as choosing every
tenth account receivable for the sample.
D. None of the above

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 6
A/An ------------- is the official notice that the firm sends to its customers to advise them to the amount of money
that is owed.

A. Invoice
B. Bill
C. A or B
D. None of the above

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 7
In the Tally Software, the ------------ directory stores all data entered by the user.

A. Bin
B. Data
C. Sub
D. None of the above

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:
QUESTION 8
The day book contains transactions relating to ____________

A. Income or expenditure
B. Sales or purchase
C. Asset or liability
D. Profit or loss

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 9
_______ are units to which costs / expenses are allocated

A. Cost Centres
B. Profit Centres
C. Cost Categories
D. Stock Category

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 10
If you enable tally vault, Tally _________ the company data

A. locks
B. splits
C. combines
D. encrypts

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 11
______________are the only default ledgers in Tally.

A. Cash and Profit & Loss Accounts

B. Income and Expense Accounts
C. Opening Balance Equity and Cash Accounts
D. All of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 12
Audit Trail is

A. History of activities registered in an accounting system

B. The process through which the audit is performed
C. Processing steps performed by the system
D. Document workflow in both manual or computerized system

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 13
Under System Implementation, Hard changeover means

A. The old and new systems are run in parallel, usually for an extended period of time
B. Converting to the new system is usually done in small steps or phases
C. Converting hard copies of the documents into electronic form
D. A full change occurring at a particular cutoff date and time

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 14
In a subsidiary ledger

A. Summary of Customer/Supplier is kept

B. Details of Customer/Supplier is kept
C. Details of subsidiary company is kept
D. In modern accounting system we no longer use subsidiary ledgers

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 15
_____________is the facility in accounting packages which allows the privileged user to log in as an
administrator and perform administrative tasks like viewing the audit log.

A. Password Control
B. Encryption
C. Vault Password
D. Authorization signature

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 16
At a minimum, we can categorize the accounts into

A. Assets, Liabilities, Equity, Income and Expenses

B. Balance Sheet Accounts and Profit & Loss Accounts
C. Assets, Liabilities, Income and Expenses
D. Trading and Non-Trading

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 17
Cost of Goods Sold is a type of

A. Liability Account
B. Expenses Account
C. Inventory Assets Account
D. Profit and Loss Account

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 18
Which of the following types of transactions usually require Ajusting Entriy

A. Payroll accrual (salary outstanding)

B. Unearned revenue
C. Prepaid insurance
D. All of the above

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:
QUESTION 19
Gateway of Tally is

A. Main screen of Tally

B. Payment Voucher Entry Screen
C. Receipt Voucher Entry Screen
D. All of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 20
What does Alt+D shortcut do in Tally

A. Delets the active Voucher, Ledger or Group

B. Creates New Account
C. Moves the crusher one screen down
D. None of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 21
To view the Balance Sheet: Go to __________________

A. Gateway of Tally > Balance Sheet

B. Gateway of Tally > Financial Statements> Balance Sheet
C. Gateway of Tally > Reports > Balance Sheet
D. Gateway of Tally > Year End Reports > Balance Sheet

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 22
Debit always increase the account balance

A. TRUE
B. FALSE

Correct Answer: B
Section: (none)
Explanation
Explanation/Reference:

QUESTION 23
The following are the major reasons of using CAAT, EXCEPT

A. Increased productivity
B. Tasks that might be impractical or impossible to be performed manually can be completed using CAAT
C. Reduced cost due to diminished time required to complete audit tasks
D. The detection risk becomes zero if CAAT is used

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 24
Hash total is

A. Summation of a nonfinancial field to keep track of the records in a batch

B. Summation of a financial field to keep track of the records in a batch
C. Summation of all the numerical fields to keep track of the records in a batch
D. Summation of all the alphabetical fields to keep track of the records in a batch

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 25
Use of Computer-Assisted Audit Tools in the Audit Process primarily depends on

A. Complexity of the IT environment

B. Size of the firm
C. Volume of the transactions
D. Monitory value of the transactions

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 26
Histograms are

A. Bar charts showing graphic relationships among strata of data

B. Historical data
C. Pie charts showing graphic relationships among strata of data
D. All of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 27
IDEA Stands for

A. Intensive Data Extraction and Analysis

B. Intensive Data Evaluation and Analysis
C. Interactive Data Extraction and Analysis
D. Internal Data Extraction and Analysis

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 28
___________________represents the added costs of not doing it right the first time

A. Price of conformance (POC)

B. Price of nonconformance (PONC)
C. Price of badperformance (POBC)
D. Price of lowperformance (POLC)

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 29
The objectives of the source-code review is to

A. Identify erroneous and nonstandard code

B. Identify unauthorized code
C. Identify ineffective and inefficient code
D. All of the above

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 30
Risk assessment is a technique used to examine potential projects in the audit universe and
A. choose projects that have the greatest risk exposure
B. choose projects that have the least risk exposure
C. exclude projects that have the least risk exposure
D. choose projects that have the greatest risk exposure

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 31
The time-honored method of using the general ledger as the starting point for audits is not enough in
examinations of modern computer systems. The auditor or financial manager should develop a consistent,
logical, audit, or management approach that

A. gives highest priority to the computerized methods

B. gives lowest priority to the computerized methods
C. fully complies with COBiT standard issued by ISACA
D. accommodates both manual and computerized methods.

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 32
Existence check is an input check to confirm that

A. the field like the customer or the student name exists in the master file
B. the data exists in the database
C. proper control exists in the application under question
D. the input field actually contains data

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 33
If you enable tally vault, Tally _________ the company data

A. locks
B. splits
C. combines
D. encrypts

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 34
POS stands for

A. Point of Sales
B. Purchase Order Sales
C. Pre Order Sales
D. Purchase Order Setting

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 35
ACL Stands for

A. Audit Command Language

B. Audit Commander Language
C. Advanced Computer Language
D. Alternative Computer Language

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 36
By default Tally has two levels of Security - __________________

A. Owner and Data Entry

B. Admin and User
C. Manager and Employee
D. Create and Approve

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 37
QuickBooks is an _____________

A. CRM Software
B. Accounting Software
C. Word Processing Software
D. Online Collaboration Software

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 38
Auditing around the computer refers to

A. concentration on the employee performance review, rather than computer performance

B. concentration on control, rather than physical or electronic documents
C. concentration on the input and output from the computer, rather than what happens in the computer
D. concentration on audit schedule, rather than control

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 39
Control totals under Input Control is

A. Arbitrary sum of a field across all records

B. All data in a particular batch of similar type
C. Total number of words in the records
D. None of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 40
In Incremental system testing

A. All inter-module dependencies are tested together

B. Subsets of modules are assembled iteratively and tested
C. Structured walk-throughs is done
D. Desk checking is performed

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:
 ICAN TOT Questions

Number: 000-000
Passing Score: 600
Time Limit: 60 min
File Version: 1.0

The Institute of Chartered Accountants of Nepal

Training on Trainers Exam

Full Marks: 100 [1000]

Pass Marks: 60 [600]

Time Allowed: 60 minuts

Exam A

QUESTION 1
Which of the following statement is NOT true

A. Risk assessment is a technique used to examine potential projects in the audit universe and choose
projects that have the greatest risk exposure.
B. Risk assessment is important in that it provides a framework for allocating audit resources to achieve
maximum benefits.
C. Risk assessment describes what must be accomplished in an audit, include budgets of time and costs, and
state priorities according to organizational goals and policies.
D. The risk assessment approach provides explicit criteria for systematically evaluating and selecting audit
projects.

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 2
The objective and context of the work to perform is a key element in any audit environment. The objective is
what we are trying to accomplish. The context is ______

A. a formal statement that describe the purposes of the audit.

B. a basic function necessary to develop the Audit Schedule and perform audits.
C. the environment in which we perform our work.
D. none of the above.

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 3
At a minimum, an IT audit plan should

A. Define scope and state objectives

B. Structure an orderly and flexible approach
C. Provide for measurement of achievement
D. All of the above

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 4
The auditor begins the examination process by becoming familiar with the company, its line of business, and its
financial systems. Given this familiarity, the next level of general data gathering would include the accumulation
or preparation of organization charts, particularly those for the accounting and IT functions. Where adequate
organization charts are unavailable, the auditor____

A. must develop them for the organization under audit.

B. should look for similar industries organization charts.
C. should focus on audit planning and schedule. When there is a proper audit plan and schedule, the
organization charts are not important
D. should not develop them but he should qualify his opinion.

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 5
For systems in which the client company uses computers to process financially significant data, the auditor
would also gather a number of other specific items of evidential matters. Among the specific items of evidential
matters which of the following is the least important

A. An overall summary or an overview flowchart of the major applications subsystems and their inter-
relationships, including inputs and outputs
B. Programming languages, data processing standards, and procedures manuals used in the computer
system
C. Procedures and provisions for backup, recovery, and restart of operations in the event of equipment failure
or accidental destruction of data
D. Supplier of IT infrastructure and warranty on equipment and data processing software

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 6
Where controls are determined not to be effective, _____________may be required to determine whether
there is a material issue with the resulting financial information.

A. substantive testing
B. test of controls
C. risk analysis
D. experts opinion

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 7
The auditor selects and uses computer-aided audit tools to

A. check the arithmetic accuracy of the data processed by the system.

B. gather information and conduct the planned audit tests.
C. obtain 100% assurance on financial statements.
D. none of the above.

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 8
To ensure that findings are accurate and descriptive of the population, samples should be:

A. Large enough to reflect the behavior of the population from which they were drawn
B. Representative of all types of individual members in the population
C. Both of the above
D. None of the above

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 9
__________is a qualitative judgment about whether a deviation's frequency of occurring and degree of
exposure are significant enough for the deviation to be corrected and included in the final audit report.

A. Materiality
B. Proximity
C. Severity
D. Frequency

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 10
The controls governing the environment in which the computer system is developed, maintained, and operated,
and within which the application controls operate are called

A. Application Controls
B. Environment Controls
C. Internal Controls
D. General Controls

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:
QUESTION 11
An application software allows to input only valid city, state, or country codes or telephone area codes. This
type of input control is called

A. Existence Check
B. Limit Check
C. Slab Check
D. Check Digits

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 12
Hash total is the summation of a ___________ field to keep track of the records in a batch.

A. Financial
B. Nonfinancial
C. Control
D. Check digit

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 13
Audit trail controls in an IT environment ensure that every transaction can be traced through each stage of
processing from its economic source to its presentation in financial statements. Which of the following is NOT
an example of audit trail control?

A. Transaction Logs
B. Log of Automatic Transactions
C. Transaction Listings
D. Transactions Check Sum

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 14
Audit productivity tools help auditors to

A. reduce the amount of time spent on administrative tasks by automating the audit function and integrating
information gathered as part of the audit process.
B. help auditors evaluate application controls, and select and analyze computerized data for substantive audit
 tests.
C. help auditors to focuses on evaluation individual modules within a program
D. all of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 15
System testing focuses on evaluation of individual modules within a program. Which of the following is not a
type of system test:

A. Structured walk-throughs
B. Substantive testing
C. Black-box testing
D. Desk checking

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 16
Four leading audit software packages are

A. ACL, IDEA, DYL and SAS

B. Word, Excel, Access and PowerPoint
C. DCL, IDEA, DYL and SAS
D. Collabtive, Basecamp, Open WorkBench and MS Project

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 17
"Histograms" are bar charts showing

A. graphic relationships among strata of data

B. graphic relationships among population of data
C. graphic relationships among samples of data
D. All of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:
QUESTION 18
Application Testing can be accomplished by

A. Submitting a set of test data that will produce known results if the application functions properly
B. Developing independent programs to re-perform the logic of the application
C. Evaluating the results of the application
D. All of the above

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 19
__________controls includes Referential integrity, Transaction integrity and Entity integrity

A. Database
B. General
C. Application
D. Internal

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 20
____________ is a technique involving the creation of software to simulate some functional capability of the
live system such as a calculation.

A. Parallel programming
B. Parallel processing
C. Parallel simulation
D. Parallel operation

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 21
Log files are commonly kept for

A. Reconstructing Events, Problem Monitoring and Intrusion Detection

B. Keeping track of user access, incidents, file access attempts, transactions and so on
C. Reviewing the source code originally written by the programmer
D. All of the above
Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 22
___________is a type of random sampling in which the population items occur naturally in subgroups. Entire
subgroups are then randomly sampled.

A. Simple random sampling

B. Systematic sampling
C. Stratified sampling
D. Cluster sampling

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 23
IDEA is an acronym for

A. Interactive Data Extraction and Analysis

B. Internal Data Extraction and Analysis
C. Interactive Data Evaluation and Analysis
D. Interactive Data Extraction and Analysis

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 24
Auditors can take on two different roles in a systems development project: control consultant or independent
reviewer. As an independent reviewer,

A. the auditor should have no design responsibilities and not report to the project team, but can provide
recommendations to be acted on or not by the project manager.
B. the auditor becomes a member of the development team and works with analysts and programmers to
design application controls
C. the auditor will have analysis and design responsibilities but should not report to the project team, rather he
should report directly to the top level management or Audit Committee.
D. None of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:
QUESTION 25
The System Development Life Cycle used by ISACA is designed as a general blueprint for the entire life cycle.
This international SDLC model comprises _______ unique phases with a formal review between each phase

A. Six
B. Three
C. Seven
D. Nine

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 26
The Requirements Definition phase is a documentation process focused on discovering the proposed system's
business requirements. Which of the following function is not covered in requirement definition phase?

A. Identification of legal requirements for data security.

B. Formal selection of security controls.
C. Risk management plan
D. Building Prototypes

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 27
RAD stands for

A. Real Application Development

B. Rapid Application Development
C. Requirement Analysis and Design
D. Risk Analysis and Definition

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 28
Compiling programs is a process of converting human-readable instructions into machine language
instructions for execution. The human-readable version of software is referred to as

A. source code
B. object code
C. pseudo code
D. assembly code

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 29
Testing the logic of procedures and data calculations to verify each transformation process as data passes
through the system is called

A. Black-box testing
B. White-box testing
C. Regression testing
D. User Acceptance Testing

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 30
Which of the following is not a changeover technique in System Implementation phase

A. Parallel operation
B. Phased changeover
C. Soft changeover
D. Hard changeover

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 31
The objectives of the System Disposal should include

A. Information preservation
B. Media sanitation
C. Hardware and software disposal
D. All of the above

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:
QUESTION 32
Systems Control Audit Review File (SCARF) is a real-time technique that can

A. collect specific transactions or processes that violate certain predetermined conditions or patterns.
B. conduct the audit based on the evidences collected ex-post
C. conduct the audit based on the evidences collected ex-ante
D. help in determining whether organization and government policies and procedures are adhered to in system
implementation

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 33
An auditor can perform all the following tasks in IDEA except

A. Document the analysis plan and progress in a To-Do List

B. Create pivot tables for multi-dimensional analysis
C. Record, create, and edit macros
D. Check the correctness of the Trial Balance

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 34
______________ (ODBC) provides a standard software interface for accessing database management
systems (DBMS)

A. Online Database Connectivity

B. Open Database Connectivity
C. Outside Database Connectivity
D. Open Database Connector

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 35
IDEA uses the random number seed to start the algorithm for calculating the random numbers. If a sample
needs to be extended, then entering the same random number seed but with a larger sample size

A. produces the same original selection plus the required additional records.
B. produces a new selection each time the sample is selected.
C. the seed has no role in selection of the random sample.
D. None of the above is correct.

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 36
Benford's Law holds that the first digit in a large list of numbers will be a

A. 9 more often than a 8, and a 8 more often than a 7, and so on through all of the digits, with 1 as the least
likely
B. 9 more often than a 8, and a 8 more often than a 7, and so on through all of the digits, with 0 as the least
likely
C. 1 more often than a 2, and a 2 more often than a 3, and so on through all of the digits, with 9 as the least
likely
D. 1 more often than a 2, and a 2 more often than a 3, and so on through all of the digits, with 0 as the least
likely

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 37
In Microsoft Excel we hit ____________ to enter an Array Formula

A. Alt+Shift+Enter
B. Ctrl+Enter
C. Shift+Enter
D. Ctrl+Shift+Enter

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 38
Information assets security management can be reduced to three basic principles, namely

A. integrity, confidentiality, and availability

B. integrity, confidentiality, and security
C. integrity, confidentiality, and accuracy
D. integrity, accuracy, and security

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:
QUESTION 39
Encryption is a technique whereby

A. a message is rendered unreadable by scrambling up the data in such a way that the legitimate recipient can
unscramble the message easily, but an unauthorized recipient would only see garbage.
B. a message is rendered unreadable by encrypting the data in such a way that the legitimate recipient can
decrypt the message easily, but an unauthorized recipient would only see garbage.
C. Both of the above
D. None of the above

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 40
RAID stands for

A. Random Array of Independent Disks

B. Redundant Array of Interconnected Disks
C. Redundant Array of Independent Disks
D. Random Array of Independent Disks

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 41
In short, _______________is called ERP in terms of business application

A. Extensive resource planning

B. Enterprise resource planning
C. Enterprise requirement planning
D. Accounting, Inventory and Payroll software

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 42
OmniAudit is a

A. database-level auditing system for Microsoft SQL Server and MSDE

B. Specific purpose Audit Planning and Scheduling software
C. Useless software
D. All in one audit software

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 43
Pretty Good Privacy (PGP) is a

A. password control software for enterprise applications

B. data encryption and decryption computer program
C. folder hiding software for private and confidential information
D. internal control policy statement

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 44
A strong internal control system is required in the computerized environment, because:

A. Information is often recorded in a form that cannot be read without the use of a computer
B. Errors that might be observed in non-computerized systems may go undetected because of the reduced
human involvement in computerized processing
C. There is a danger that errors in processing may be applied to a large number of transactions without being
noticed
D. All of the above

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 45
Auditing around the computer refers to

A. concentration on the employee performance review, rather than computer performance

B. concentration on control, rather than physical or electronic documents
C. concentration on the input and output from the computer, rather than what happens in the computer
D. concentration on audit schedule, rather than control

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:
QUESTION 46
Use of Computer-Assisted Audit Tools in the Audit Process primarily depends on

A. Complexity of the IT environment

B. Size of the firm
C. Volume of the transactions
D. Monitory value of the transactions

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 47
The objectives of the source-code review is to

A. Identify erroneous and nonstandard code

B. Identify unauthorized code
C. Identify ineffective and inefficient code
D. All of the above

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 48
Automated macro like tasks are called __________ in IDEA

A. Scripts
B. Expressions
C. Java Script
D. Functions

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 49
___________________represents the added costs of not doing it right the first time

A. Price of conformance (POC)

B. Price of nonconformance (PONC)
C. Price of badperformance (POBC)
D. Price of lowperformance (POLC)

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 50
The following are the major reasons of using CAAT, EXCEPT

A. Increased productivity
B. Tasks that might be imprac cal or impossible to be performed manually can be completed using CAAT
C. Reduced cost due to diminished time required to complete audit tasks
D. The detection risk becomes zero if CAAT is used

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:
 ICAN 45 Hour ITT Exam AITE (June 1, 2012)

Number: 000-000
Passing Score: 480
Time Limit: 60 min
File Version: 1.0

The Institute of Chartered Accountants of Nepal

Assessment test for 45 hours of IT Training

Full Marks: 800

Pass Marks: 480

Total Number of Questions: 40

Time Available to Answer the Questions: 1 Hour

{You are required to answer both the Multiple Choice Questions and Practical Question in the time allotted}
Exam A

QUESTION 1
The major divisions of a Chart of Accounts are

A. Assets, Liabilities, Equity, Income, Cost of Goods Sold and Expenses

B. Balance Sheet, Profit and Loss Accounts and Cash Flow
C. Balance Sheet, Profit and Loss Accounts and Trial Balance
D. Debits and Credits

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 2
Cost of Goods Sold is a type of

A. Liability Account
B. Expenses Account
C. Inventory Assets Account
D. Profit and Loss Account

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 3
The general ledger is

A. where financial information from all closing entries of a business is consolidated

B. where financial information from all opening entries of a business is consolidated
C. where financial information from all adjustment entries of a business is consolidated
D. where financial information from all aspects of a business is consolidated

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 4
Which of the following types of transactions usually require Ajusting Entriy

A. Payroll accrual (salary outstanding)

B. Unearned revenue
C. Prepaid insurance
D. All of the above
Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 5
ODBC stands for

A. Online Database Connectivity

B. Optional Database Connectivity
C. Open Database Connectivity
D. Open Database Connector

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 6
If you enable tally vault, Tally _________ the company data

A. locks
B. splits
C. combines
D. encrypts

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 7
Once the Company is created, the Company Information cannot be changed in Tally

A. TRUE
B. FALSE

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 8
Gateway of Tally is

A. Main screen of Tally

B. Payment Voucher Entry Screen
C. Receipt Voucher Entry Screen
D. All of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 9
In Tally, Groups are

A. Income, Expenses, Assets and Liability

B. Charts of Accounts
C. collection of Ledgers of the same nature
D. Groups of Voucher Classes

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 10
What does Alt+D shortcut do in Tally

A. Delets the active Voucher, Ledger or Group

B. Creates New Account
C. Moves the crusher one screen down
D. None of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 11
There are ___ different pre-defined Voucher types in Tally (plus 2 in Payroll)

A. 4
B. 18
C. 26
D. 52

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 12
In JV-001, JV is called
A. Prefix
B. Suffix
C. Start Number
D. Start Alphabet

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 13
POS stands for

A. Point of Sales
B. Purchase Order Sales
C. Pre Order Sales
D. Purchase Order Setting

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 14
Voucher Classes are used to_____________________

A. classify vouchers
B. group vouchers
C. automate Accounting transactions into Cost Centers
D. automate Accounting Allocations in transactions

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 15
To view the Balance Sheet: Go to __________________

A. Gateway of Tally > Balance Sheet

B. Gateway of Tally > Financial Statements> Balance Sheet
C. Gateway of Tally > Reports > Balance Sheet
D. Gateway of Tally > Year End Reports > Balance Sheet

Correct Answer: A
Section: (none)
Explanation
Explanation/Reference:

QUESTION 16
By default Tally has two levels of Security - __________________

A. Owner and Data Entry

B. Admin and User
C. Manager and Employee
D. Create and Approve

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 17
Tally data can be imported into MS Excel using

A. MS ACCESS
B. ODBC
C. SQL Server
D. Oracle

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 18
QuickBooks is an _____________

A. CRM Software
B. Accounting Software
C. Word Processing Software
D. Online Collaboration Software

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 19
______________are the only default ledgers in Tally.

A. Cash and Profit & Loss Accounts

B. Income and Expense Accounts
C. Opening Balance Equity and Cash Accounts
D. All of the above
Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 20
Debit always increase the account balance

A. TRUE
B. FALSE

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 21
Auditor should be aware of CAAT because:

A. Paper documents are being replaced by electronic documents in businesses

B. CAAT is the latest fashion in auditing
C. CAAT does all the works of an auditor
D. All of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 22
The following are the major reasons of using CAAT, EXCEPT

A. Increased productivity
B. Tasks that might be impractical or impossible to be performed manually can be completed using CAAT
C. Reduced cost due to diminished time required to complete audit tasks
D. The detection risk becomes zero if CAAT is used

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 23
A strong internal control system is required in the computerized environment, because:

A. Information is often recorded in a form that cannot be read without the use of a computer
B. Errors that might be observed in non-computerized systems may go undetected because of the reduced
 human involvement in computerized processing
C. There is a danger that errors in processing may be applied to a large number of transactions without being
noticed
D. All of the above

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 24
Auditing around the computer refers to

A. concentration on the employee performance review, rather than computer performance

B. concentration on control, rather than physical or electronic documents
C. concentration on the input and output from the computer, rather than what happens in the computer
D. concentration on audit schedule, rather than control

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 25
In SLC Symbol Number - 1280095 K, The last letter K is an example of"

A. Limit Check
B. Existence Check
C. Range check
D. Check digit

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 26
Control totals under Input Control is

A. Arbitrary sum of a field across all records

B. All data in a particular batch of similar type
C. Total number of words in the records
D. None of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:
QUESTION 27
Batch controls are used to manage the flow of high volumes of transactions through batch processing systems
to ensure

A. All records in the batch are processed

B. No records are processed more than once
C. An audit trail of transactions is created from input through processing to the output stage of the system
D. All of the above

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 28
Hash total is

A. Summation of a nonfinancial field to keep track of the records in a batch

B. Summation of a financial field to keep track of the records in a batch
C. Summation of all the numerical fields to keep track of the records in a batch
D. Summation of all the alphabetical fields to keep track of the records in a batch

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 29
In Incremental system testing

A. All inter-module dependencies are tested together

B. Subsets of modules are assembled iteratively and tested
C. Structured walk-throughs is done
D. Desk checking is performed

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 30
Use of Computer-Assisted Audit Tools in the Audit Process primarily depends on

A. Complexity of the IT environment

B. Size of the firm
C. Volume of the transactions
D. Monitory value of the transactions
Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 31
Histograms are

A. Bar charts showing graphic relationships among strata of data

B. Historical data
C. Pie charts showing graphic relationships among strata of data
D. All of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 32
CAATs can be used to scan for invalid values or combinations of values that indicate a breakdown in controls
or potential fraud. They can also be used to join two files, identify sequence gaps in check or purchase order
files, and check for duplicates.

A. TRUE
B. FALSE

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 33
In the review of system, the following figure represents

A. Black Box approach

B. White Box approach
C. Transparent Box approach
D. Block by block approach

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:
QUESTION 34
The objectives of the source-code review is to

A. Identify erroneous and nonstandard code

B. Identify unauthorized code
C. Identify ineffective and inefficient code
D. All of the above

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 35
Audit Trail is

A. History of activities registered in an accounting system

B. The process through which the audit is performed
C. Processing steps performed by the system
D. Document workflow in both manual or computerized system

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 36
IDEA Stands for

A. Intensive Data Extraction and Analysis

B. Intensive Data Evaluation and Analysis
C. Interactive Data Extraction and Analysis
D. Internal Data Extraction and Analysis

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 37
Microsoft _____________ is one of the powerful Generalized Audit Tool

A. Dynamics
B. Excel
C. Word
D. SharePoint
Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 38
Under System Implementation, Hard changeover means

A. The old and new systems are run in parallel, usually for an extended period of time
B. Converting to the new system is usually done in small steps or phases
C. Converting hard copies of the documents into electronic form
D. A full change occurring at a particular cutoff date and time

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 39
Automated macro like tasks are called __________ in IDEA

A. Scripts
B. Expressions
C. Java Script
D. Functions

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 40
___________________represents the added costs of not doing it right the first time

A. Price of conformance (POC)

B. Price of nonconformance (PONC)
C. Price of badperformance (POBC)
D. Price of lowperformance (POLC)

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:
 ICAN 45 Hour ITT Exam AITE (June 1, 2012)

Number: 000-000
Passing Score: 480
Time Limit: 60 min
File Version: 1.0

The Institute of Chartered Accountants of Nepal

Assessment test for 45 hours of IT Training

Full Marks: 800

Pass Marks: 480

Total Number of Questions: 40

Time Available to Answer the Questions: 1 Hour

{You are required to answer both the Multiple Choice Questions and Practical Question in the time allotted}
Exam A

QUESTION 1
The major divisions of a Chart of Accounts are

A. Assets, Liabilities, Equity, Income, Cost of Goods Sold and Expenses

B. Balance Sheet, Profit and Loss Accounts and Cash Flow
C. Balance Sheet, Profit and Loss Accounts and Trial Balance
D. Debits and Credits

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 2
Cost of Goods Sold is a type of

A. Liability Account
B. Expenses Account
C. Inventory Assets Account
D. Profit and Loss Account

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 3
The general ledger is

A. where financial information from all closing entries of a business is consolidated

B. where financial information from all opening entries of a business is consolidated
C. where financial information from all adjustment entries of a business is consolidated
D. where financial information from all aspects of a business is consolidated

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 4
Which of the following types of transactions usually require Ajusting Entriy

A. Payroll accrual (salary outstanding)

B. Unearned revenue
C. Prepaid insurance
D. All of the above
Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 5
ODBC stands for

A. Online Database Connectivity

B. Optional Database Connectivity
C. Open Database Connectivity
D. Open Database Connector

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 6
If you enable tally vault, Tally _________ the company data

A. locks
B. splits
C. combines
D. encrypts

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 7
Once the Company is created, the Company Information cannot be changed in Tally

A. TRUE
B. FALSE

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 8
Gateway of Tally is

A. Main screen of Tally

B. Payment Voucher Entry Screen
C. Receipt Voucher Entry Screen
D. All of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 9
In Tally, Groups are

A. Income, Expenses, Assets and Liability

B. Charts of Accounts
C. collection of Ledgers of the same nature
D. Groups of Voucher Classes

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 10
What does Alt+D shortcut do in Tally

A. Delets the active Voucher, Ledger or Group

B. Creates New Account
C. Moves the crusher one screen down
D. None of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 11
There are ___ different pre-defined Voucher types in Tally (plus 2 in Payroll)

A. 4
B. 18
C. 26
D. 52

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 12
In JV-001, JV is called
A. Prefix
B. Suffix
C. Start Number
D. Start Alphabet

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 13
POS stands for

A. Point of Sales
B. Purchase Order Sales
C. Pre Order Sales
D. Purchase Order Setting

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 14
Voucher Classes are used to_____________________

A. classify vouchers
B. group vouchers
C. automate Accounting transactions into Cost Centers
D. automate Accounting Allocations in transactions

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 15
To view the Balance Sheet: Go to __________________

A. Gateway of Tally > Balance Sheet

B. Gateway of Tally > Financial Statements> Balance Sheet
C. Gateway of Tally > Reports > Balance Sheet
D. Gateway of Tally > Year End Reports > Balance Sheet

Correct Answer: A
Section: (none)
Explanation
Explanation/Reference:

QUESTION 16
By default Tally has two levels of Security - __________________

A. Owner and Data Entry

B. Admin and User
C. Manager and Employee
D. Create and Approve

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 17
Tally data can be imported into MS Excel using

A. MS ACCESS
B. ODBC
C. SQL Server
D. Oracle

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 18
QuickBooks is an _____________

A. CRM Software
B. Accounting Software
C. Word Processing Software
D. Online Collaboration Software

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 19
______________are the only default ledgers in Tally.

A. Cash and Profit & Loss Accounts

B. Income and Expense Accounts
C. Opening Balance Equity and Cash Accounts
D. All of the above
Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 20
Debit always increase the account balance

A. TRUE
B. FALSE

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 21
Auditor should be aware of CAAT because:

A. Paper documents are being replaced by electronic documents in businesses

B. CAAT is the latest fashion in auditing
C. CAAT does all the works of an auditor
D. All of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 22
The following are the major reasons of using CAAT, EXCEPT

A. Increased productivity
B. Tasks that might be impractical or impossible to be performed manually can be completed using CAAT
C. Reduced cost due to diminished time required to complete audit tasks
D. The detection risk becomes zero if CAAT is used

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 23
A strong internal control system is required in the computerized environment, because:

A. Information is often recorded in a form that cannot be read without the use of a computer
B. Errors that might be observed in non-computerized systems may go undetected because of the reduced
 human involvement in computerized processing
C. There is a danger that errors in processing may be applied to a large number of transactions without being
noticed
D. All of the above

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 24
Auditing around the computer refers to

A. concentration on the employee performance review, rather than computer performance

B. concentration on control, rather than physical or electronic documents
C. concentration on the input and output from the computer, rather than what happens in the computer
D. concentration on audit schedule, rather than control

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 25
In SLC Symbol Number - 1280095 K, The last letter K is an example of"

A. Limit Check
B. Existence Check
C. Range check
D. Check digit

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 26
Control totals under Input Control is

A. Arbitrary sum of a field across all records

B. All data in a particular batch of similar type
C. Total number of words in the records
D. None of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:
QUESTION 27
Batch controls are used to manage the flow of high volumes of transactions through batch processing systems
to ensure

A. All records in the batch are processed

B. No records are processed more than once
C. An audit trail of transactions is created from input through processing to the output stage of the system
D. All of the above

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 28
Hash total is

A. Summation of a nonfinancial field to keep track of the records in a batch

B. Summation of a financial field to keep track of the records in a batch
C. Summation of all the numerical fields to keep track of the records in a batch
D. Summation of all the alphabetical fields to keep track of the records in a batch

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 29
In Incremental system testing

A. All inter-module dependencies are tested together

B. Subsets of modules are assembled iteratively and tested
C. Structured walk-throughs is done
D. Desk checking is performed

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 30
Use of Computer-Assisted Audit Tools in the Audit Process primarily depends on

A. Complexity of the IT environment

B. Size of the firm
C. Volume of the transactions
D. Monitory value of the transactions
Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 31
Histograms are

A. Bar charts showing graphic relationships among strata of data

B. Historical data
C. Pie charts showing graphic relationships among strata of data
D. All of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 32
CAATs can be used to scan for invalid values or combinations of values that indicate a breakdown in controls
or potential fraud. They can also be used to join two files, identify sequence gaps in check or purchase order
files, and check for duplicates.

A. TRUE
B. FALSE

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 33
In the review of system, the following figure represents

A. Black Box approach

B. White Box approach
C. Transparent Box approach
D. Block by block approach

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:
QUESTION 34
The objectives of the source-code review is to

A. Identify erroneous and nonstandard code

B. Identify unauthorized code
C. Identify ineffective and inefficient code
D. All of the above

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 35
Audit Trail is

A. History of activities registered in an accounting system

B. The process through which the audit is performed
C. Processing steps performed by the system
D. Document workflow in both manual or computerized system

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 36
IDEA Stands for

A. Intensive Data Extraction and Analysis

B. Intensive Data Evaluation and Analysis
C. Interactive Data Extraction and Analysis
D. Internal Data Extraction and Analysis

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 37
Microsoft _____________ is one of the powerful Generalized Audit Tool

A. Dynamics
B. Excel
C. Word
D. SharePoint
Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 38
Under System Implementation, Hard changeover means

A. The old and new systems are run in parallel, usually for an extended period of time
B. Converting to the new system is usually done in small steps or phases
C. Converting hard copies of the documents into electronic form
D. A full change occurring at a particular cutoff date and time

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 39
Automated macro like tasks are called __________ in IDEA

A. Scripts
B. Expressions
C. Java Script
D. Functions

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 40
___________________represents the added costs of not doing it right the first time

A. Price of conformance (POC)

B. Price of nonconformance (PONC)
C. Price of badperformance (POBC)
D. Price of lowperformance (POLC)

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:
 ICAN 45 Hour ITT Exam - 23 November, 2012

Number: 000-000
Passing Score: 600
Time Limit: 60 min
File Version: 1.0

The Institute of Chartered Accountants of Nepal

Assessment test for 55 hours of IT Training

Full Marks: 800

Pass Marks: 480

Total Number of Questions: 40

Time Available: 60 minutes

Please read the instructions carefully:

1. You are required to answer both the Multiple Choice Questions and Practical Question in the time allotted
2. You should complete this test first and start the Practical Question after the end of this exam.
3. You are not allowed to switch to other windows while taking this Multiple Choice Exam. If you are found
switching to other programs, it will be treated as cheating.
Exam A

QUESTION 1
___________ is a technique used to examine potential projects in the audit universe and choose projects that
have the greatest risk exposure.

A. Substantive testing
B. Audit Universe
C. Risk assessment
D. Test of control

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 2
____________ are formal statements that describe the purposes of the audit.

A. Audit objectives
B. Engagement letter
C. Appointment letter
D. Audit planning

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 3
The objective is what we are trying to accomplish. The________is the environment in which we perform our
work.

A. system
B. application
C. context
D. all of the above

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 4
All of the following statement are true except

A. The purpose of the preliminary review phase of an audit engagement is to gather information as a basis for
formulating an audit report.
B. During preliminary review, the auditor will gather general information on the processes and systems under
 review.
C. The auditor conducts this preliminary review at a general level, without examining details of individual
applications and the processes involved.
D. In the preliminary review step, the auditor should obtain and review summary-level information and evaluate
it in relation to the audit objectives.

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 5
In the general fact gathering the auditor is mainly interested in

A. Data control procedures

B. Descriptions of physical security control transactions
C. Data and source statement library procedures
D. all of the above

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 6
The auditor selects and uses computer-aided audit tools to

A. evaluate the audit risk.

B. formulate audit objective and the audit plan
C. formulate audit tests
D. gather information and conduct the planned audit tests.

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 7
________results from subjecting an asset to potential loss, harm, damage, theft, improper or inefficient use, or
neglect.

A. Exposure
B. Risk
C. Theft
D. Proximity

Correct Answer: A
Section: (none)
Explanation
Explanation/Reference:

QUESTION 8
Materiality is a ____________ judgment about whether a deviation’s frequency of occurring and degree of
exposure are significant enough for the deviation to be corrected and included in the final audit report.

A. subjective and qualitative

B. quantitative
C. formula based
D. All of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 9
With proper controls, computerized systems can be more reliable than non-computerized systems.

A. True
B. False

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 10
Systems development standards operated by the organization, the controls that apply to the operation of the
computer installation, and those governing the functioning of systems software come under the scope of

A. general controls.
B. application controls.
C. environmental controls.
D. logical controls.

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 11
Luhn algorithm is a term related to

A. software cost estimation

B. range check
C. check digit
D. substantive testing

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 12
the use of batch figures to monitor the batch as it moves from one programmed procedure to another is called

A. run-to-run control
B. sequence check
C. control total
D. hash total

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 13
_____ require the module to be executed on a machine

A. desk checking
B. structured walk-through
C. dynamic tests
D. programmed procedures

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 14
Open Workbench is a type of

A. project management software

B. audit management software
C. specialized audit software
D. groupware

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 15
When an auditor compares current data with a trend or pattern as a basis for evaluating reasonableness, we
call it

A. Compliance testing
B. Reasonableness check
C. Modeling
D. Comparative analysis

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 16
___________ refers to reasonableness checks and comparison with known outputs

A. Static analysis test

B. Verification of logic
C. System audit
D. Desk checking

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 17
leave.IsHour = bool.Parse(entity.Reminder == "" ? "False" : entity.Reminder);
leave.IsHalfDayLeave = entity.Location == null ? false : bool.Parse(entity.Location);

if (leave.IsHour.Value)
{
leave.DaysOrHours = double.Parse(entity.Url.Split(';')[0].ToString() == "" ? "0" : entity.Url.Split(';')
[0].ToString());
leave.ToDateEng = leave.FromDateEng;
}
else if (leave.IsHalfDayLeave.Value)
{
leave.ToDateEng = leave.FromDateEng;
leave.DaysOrHours = (double)0.5;
}

This is an example of

A. encrypted text
B. object code
C. source code
D. cypher text

Correct Answer: C
Section: (none)
Explanation
Explanation/Reference:

QUESTION 18
Audit trail is generally not helpful for

A. Individual Accountability
B. Reconstructing Events
C. Intrusion Detection
D. Intrusion Prevention

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 19
OpenOffice Calc is

A. an excel alternative
B. special purpose audit software
C. NPV/IRR calculating utility
D. all of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 20
COBIT stands for

A. The Control Objectives on Information Technology

B. The Control Objectives on Information and Related Technology
C. The Control Objectives for Information and Related Technology
D. The Computer Objectives for Information and Related Technology

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 21
The 1-10-100 rule provides an illustration of the _______ related problems

A. return on investment
B. costs of quality
C. software cost
D. quality control
Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 22
Post-implementation phase is the ___th phase in the SDLC

A. 4
B. 5
C. 6
D. 7

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 23
In IDEA, the floating, dockable, and customizable toolbar that contains buttons for quick access to frequently
used tasks is called

A. Fly-Out Windows
B. Operations Toolbar
C. Status Bar
D. Properties Window

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 24
You can edit the data after you import it in IDEA

A. True
B. False

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 25
All of the following statements are true except

A. Quick Summarization may only be used if the database has no more than 4,000 unique keys
B. Quick Summarization allows you to select only one field to summarize.
C. Benford’s Law holds that the first digit in a large list of numbers will be a 9 more often than a 8, and a 8
more often than a 7, and so on through all of the digits, with 1 as the least likely.
D. Benford analysis counts digit sequences of values in the database and compares the totals to the
predicted result according to Benford's Law.

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 26
ODBC was created so as to

A. allow us to import Tally data into excel.

B. to make the job of CAAT, i.e., extraction and analysis, easier.
C. be independent of programming languages or operational systems and offers access to different database
systems.
D. create the bridge between one database to another.

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 27
You can import the Tally data into excel directly only when the ODBC server is running

A. True
B. False

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 28
In MS Excel, the formula =RAND()

A. round down a decimal number.

B. round up a decimal number.
C. genreate a random string to text.
D. will generate a random number.

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:
QUESTION 29
Information assets security management can be reduced to three basic principles, namely

A. clarity, adaptibality and availability.

B. integrity, confidentiality, and availability.
C. authenticity, maintainability and auditability.
D. compliance, verification and authentication.

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 30
The balances are extracted from the ledger accounts and assembled in a

A. Balance Sheet
B. General Ledger Master
C. Database
D. Trial Balance

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 31
The correct order of Financial Statement Preparation is

A. Balance Sheet > Profit & Loss Account > Statement of Retained Earnings.
B. Balance Sheet > Profit & Loss Account > Statement of Retained Earnings.
C. Profit & Loss Account > Statement of Retained Earnings > Balance Sheet.
D. Any of the above.

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 32
Apex is an example of

A. Web based Accounting Software.

B. CAAT Software
C. Database Tool
D. None of the above
Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 33
When you first open a fresh installation of Tally

A. you do not have any company file.

B. you have a sample accounting only company
C. you have a sample accounting with inventory company
D. You may or may not have the sample company file depending on the option you choose during the
installation process.

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 34
If you use the Multiple Ledger creation feature in Tally

A. You can create multiple ledger at once.

B. You should take care of the account settings for each multiple ledger.
C. Tally makes the task easier by saving the setting of that ledger as default for the ledgers you create in
multiple mode.
D. All of the above.

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 35
Journals are used

A. for cash transactions only

B. in traditional accounting method.
C. for ex-ante and ex-post transaction recording.
D. to record adjustment between ledgers.

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 36
Which of the following statement is not true?
A. Voucher Classes are used to classify Accounting Allocations in transactions.
B. To create an Inventory item and apply the rate to the item in our Invoice we need a unit of measurement.
C. The print settings in the right panel are only available when you are printing.
D. Account allocation in voucher class can be used to create an abbreviated tax invoice.

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 37
Account Debit Credit
Kumari bank 50,000
Cash 50,000

This is an example of

A. Correct voucher
B. Balanced voucher
C. Contra Voucher
D. Monetary voucher

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 38
If you want to expand/condense a report in Tally to the available details, if any, you will press

A. Ctrl + F1
B. Alt + F1
C. F1
D. Ctrl + Alt + F1

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 39
You cannot define the custom ageing interval in Ageing Analysis Reports

A. True
B. False
Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 40
Tally shows group wise Trial Balance. Next level detail for a group can be seen by pressing

A. Ctrl + Enter
B. Shift + Enter
C. Alt + Enter
D. Enter

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:
 ICAN ITT 45 Hour Exam - November 30, 2012

Number: 000-000
Passing Score: 600
Time Limit: 60 min
File Version: 1.0

The Institute of Chartered Accountants of Nepal

Assessment test for 45 hours of IT Training

Full Marks: 800

Pass Marks: 480

Total Number of Questions: 40

Time Available: 60 minutes

Please read the instructions carefully:

1. You are required to answer both the Multiple Choice Questions and Practical Question in the time allotted
2. You should complete this test first and start the Practical Question after the end of this exam.
3. You are not allowed to switch to other windows while taking this Multiple Choice Exam. If you are found
switching to other programs, it will be treated as cheating.
Exam A

QUESTION 1
In the Preliminary Review phase of the System Development, we are concerned in all the following except:

A. Programming languages, data processing standards, and procedures manuals used in the computer
system
B. Descriptions of physical security control
C. Prototypes approved by the management
D. An overall summary or an overview flowchart of the major applications subsystems and their inter-
relationships, including inputs and outputs

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 2
Which of the following statement is not true:

A. Detection risk is the risk that auditors are willing to take that errors not detected or prevented by the control
structure will also not be detected by the auditor.
B. Control risk is the likelyhood that the control structure is flawed because controls are either absent or
inadequate to prevent or detect errors in the accounts.
C. Industrial risk is the risk that is associated with the unique characteristics of the business or industry of the
client.
D. Inherent risk is associated with the unique characteristics of the business or industry of the client.

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 3
During the audit of an IS application,

A. the auditor may totally rely in the experts opinion because he/she is not expected to possess complete IT
knowledge.
B. the auditor may test check those areas that are not within the scope of the audit.
C. the auditor may continue the audit with minimal planning because the actual extent and scope of audit can
only be discovered as the audit progresses
D. the auditor may build and process test data to verify the processing steps of an application.

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 4
Auditing through the computer involves
A. The auditor checks the inputs and corresponding outputs produced by the computer
B. The auditor selects and uses computer-aided audit tools to gather information and conduct the planned
audit tests.
C. The auditor uses the computer to prepare and communicate the audit findings
D. All of the above

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 5
Objective and Context is the basis by which all audits should be approached. The context is:

A. the environment in which we perform our work

B. what we are trying to accomplish
C. what system the organization has employed
D. the overall internal control policy adopted by the organization

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 6
Application controls are the controls, both manual and computerized, within the business application to ensure
that

A. data is processed completely, accurately, and in a timely manner

B. unauthorized persons cannot get access to the application system
C. the laws governing the business operations and accounts are complied with
D. all of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 7
Which of the following is not related to Group of Records (Batch) Tests

A. Control totals
B. Hash totals
C. Sequence check
D. Performance check

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 8
The record of successfully processed transactions is called

A. transaction logs
B. audit log
C. audit trial
D. database

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 9
When all inter-module dependencies in a system are tested together, you call it

A. desk walk through

B. retro testing
C. big bang testing
D. incremental testing

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 10
Microsoft Exchange, Confluence, Collabtive and Basecamp are the examples of

A. Hardware
B. GAS
C. Groupware
D. Caseware

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 11
The calculation of 10% of commission on sales amount is an example of
A. footing
B. extension
C. excel formula
D. auditing

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 12
Transaction integrity is an example of

A. database control
B. batch control
C. internal control
D. none of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 13
System effectiveness review does not involve

A. Identify the objective of the information system

B. Assess the system impact by comparing ex ante and ex post measures.
C. Assess the effectiveness of source code library control
D. Identify the data sources;

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 14
White-box methods rely on

A. the internal control structure of the program to be tested.

B. program’s functional specifications
C. application's programming language
D. all of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 15
When you pick samples from naturally divided sub-groups you call it

A. random sampling
B. stratified sampling
C. cluster sampling
D. systematic sampling

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 16
Remote audit is possible in Tally through Tally.NET

A. True
B. False

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 17
All double entry accounting—and all accounting software—is based on the premise that every transaction
affects at least two accounts.

A. For every entry you make, one account will go to Balance Sheet and other will go to Profit and Loss
Account
B. For every entry you make, one account will go to Asset Account and other will go to Liability Account
C. For every entry you make, one account will go to Income Account and other will go to Expenses Account
D. For every entry you make, one account will be debited and the other will be credited

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 18
What does this Gold means?

A. This is a single user version of Tally

B. This is a multi user version of Tally
C. This is genuine Tally
D. This is Accounting with Inventory version of Tally

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 19
Tally is an example of

A. Web based accounting package

B. Desktop based accounting package
C. Cloud based accounting package
D. Virtual accounting package

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 20
The auditor selects and uses computer-aided audit tools to

A. evaluate the audit risk.

B. formulate audit objective and the audit plan
C. formulate audit tests
D. gather information and conduct the planned audit tests.

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 21
With proper controls, computerized systems can be more reliable than non-computerized systems.

A. True
B. False

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 22
If you use the Multiple Ledger creation feature in Tally

A. You can create multiple ledger at once.

B. You should take care of the account settings for each multiple ledger.
C. Tally makes the task easier by saving the setting of that ledger as default for the ledgers you create in
multiple mode.
D. All of the above.

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 23
Which of the following statement is not true?

A. Voucher Classes are used to classify Accounting Allocations in transactions.

B. To create an Inventory item and apply the rate to the item in our Invoice we need a unit of measurement.
C. The print settings in the right panel are only available when you are printing.
D. Account allocation in voucher class can be used to create an abbreviated tax invoice.

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 24
If you want to expand/condense a report in Tally to the available details, if any, you will press

A. Ctrl + F1
B. Alt + F1
C. F1
D. Ctrl + Alt + F1

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 25
The objective is what we are trying to accomplish. The________is the environment in which we perform our
work.

A. system
B. application
C. context
D. all of the above

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 26
An audit trail

A. is used to make backup copies

B. is the recorded history of operations performed on a file
C. can be used to restore lost information
D. none of the above

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 27
Database management systems are intended to

A. eliminate data redundancy

B. establish relationship among records in different files
C. manage file access and maintain data integrity
D. all of the above

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 28
You can import the Tally data into excel directly only when the ODBC server is running

A. True
B. False

Correct Answer: A
Section: (none)
Explanation
Explanation/Reference:

QUESTION 29
Information assets security management can be reduced to three basic principles, namely

A. clarity, adaptibality and availability.

B. integrity, confidentiality, and availability.
C. authenticity, maintainability and auditability.
D. compliance, verification and authentication.

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 30
Party account can be created through

A. Group creation window

B. Ledger creation window
C. Inventory creation window
D. Any one of them

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 31
We can show Bill wise details of Debtors and Creditors by activating

A. Bill by bill
B. Maintain Bill wise Details
C. Maintain References
D. None of these

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 32
To print a voucher from Tally we need to press

A. Ctrl + P
B. Shift + P
C. Alt + P
D. Ctrl + Alt + P
Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 33
What is MRP?

A. Market Price
B. Maximum Retail Price
C. Marginal Price
D. Minimum Retail Price

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 34
To hide the name of the Company you need to define

A. Security Control
B. Tally Audit
C. Create at least one User
D. Tally Vault Password

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 35
To change the date, shortcut used

A. Alt+F2
B. Alt+F3
C. F2
D. F1

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 36
The objectives of the source-code review is to
A. Identify erroneous and nonstandard code
B. Identify unauthorized code
C. Identify ineffective and inefficient code
D. All of the above

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 37
Microsoft _____________ is one of the powerful Generalized Audit Tool

A. Dynamics
B. Excel
C. Word
D. SharePoint

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 38
Automated macro like tasks are called __________ in IDEA

A. Scripts
B. Expressions
C. Java Script
D. Functions

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 39
IDEA Stands for

A. Intensive Data Extraction and Analysis

B. Intensive Data Evaluation and Analysis
C. Interactive Data Extraction and Analysis
D. Internal Data Extraction and Analysis

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:
QUESTION 40
___________________represents the added costs of not doing it right the first time

A. Price of conformance (POC)

B. Price of nonconformance (PONC)
C. Price of badperformance (POBC)
D. Price of lowperformance (POLC)

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:
 ICAN ITT 45 Hour Exam -December 21, 2012

Number: 000-000
Passing Score: 600
Time Limit: 60 min
File Version: 1.0

The Institute of Chartered Accountants of Nepal

Assessment test for 45 hours of IT Training

Full Marks: 800

Pass Marks: 480

Total Number of Questions: 40

Time Available: 60 minutes

Please read the instructions carefully:

1. You are required to answer both the Multiple Choice Questions and Practical Question in the time allotted
2. You should complete this test first and start the Practical Question after the end of this exam.
3. You are not allowed to switch to other windows while taking this Multiple Choice Exam. If you are found
switching to other programs, it will be treated as cheating.
Exam A

QUESTION 1
In Tally ERP 9, F12 is known as

A. Company Features
B. Company Configuration
C. Accounting Features
D. None of these

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 2
A Ledger can't be deleted if it is carrying Opening Balance

A. True
B. False

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 3
Purchase VAT Ledger is created under which account?

A. Duties & Taxes

B. Sales
C. Sales Return
D. Purchase Return

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 4
You can repeat narration by pressing

A. Shift + R
B. Alt + R
C. Ctrl + R
D. Alt + Shift + R

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 5
Discount column is available in

A. Contra voucher
B. Journal voucher
C. Both (a) and (b)
D. None of the above

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 6
To hide the name of the Company you need to define

A. Security Control
B. Tally Audit
C. Create at least one User
D. Tally Vault Password

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 7
How can you see VAT Reports?

A. Gateway of Tally > Display

B. Gateway of Tally > VAT Reports
C. Gateway of Tally > Display > Statutory Info
D. Gateway of Tally > Display> Statutory Reports

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 8
VAT/PAN number of the Company will appear in which report?

A. Cash/Bank Book
B. Profit and Loss A/C
C. Reminder Letter
D. None of the above

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 9
Which is not a Default Ledger in Tally?

A. Cash in Hand
B. Capital Account
C. Profit & Loss
D. None of these

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 10
If the Financial Year from is 1st April 2012 and the Books Beginning from is 1st January 2013 then what will be
the Closing Date?

A. 31st Dec 2013

B. 31st March 2014
C. 31st December 2014
D. None of the above

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 11
To see any report in detailed way, press

A. Alt+F2
B. F2
C. Alt + C
D. Alt + F1

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:
QUESTION 12
Tally supports multiple currency

A. True
B. False

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 13
To view the Profit & Loss Account, you go to

A. Gateway of Tally > Profit & Loss A/c

B. Display > Profit & Loss A/c
C. Reports > Profit & Loss A/c
D. All of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 14
In Tally ERP 9, ERP stands for

A. Extensive Requirement Planning

B. Enerprise Requirement Plannin
C. Enterprise Resource Planning
D. External Resource Planning

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 15
The shortcut used to activate calculator in Tally is

A. Ctrl + M
B. Ctrl + N
C. Ctrl + C
D. Alt + C

Correct Answer: B
Section: (none)
Explanation
Explanation/Reference:

QUESTION 16
A complete accounting system is based on

A. Double entry book keeping principle

B. Multiple entry book keeping principle
C. Debit and credit entry book keeping principle
D. All of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 17
In QuickBooks Accounting software, the window that shows the graphical summary of company balances and
choosen accounts is called:

Exhibit:

A. Histogram
B. Diagram
C. Charts
D. Company Snapshot

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:
QUESTION 18
Inflexibility of document formats in exporting the reports from an accounting software is

A. Required because Windows does not support all the formats

B. Designed with keeping in view that the customer may not have all the document formats
C. A weakness in accounting package
D. All of the above

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 19
SQL Server 2005 Express Edition can only utilize

A. only 1 GB of RAM
B. only 2 GB or RAM
C. only 4 GB of RAM
D. there is no such limitation. It can use all the memory available in the computer.

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 20
Easy exit to operating system refers to

A. large close buttom at the top right corner of the application software
B. closing the application software without multiple warning windows
C. the facility to switch to the operating system from the application software being used.
D. all of the above

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 21
A general ledger is not concerned with the level of detail. Its primary focus is on the final balance.

A. True
B. False

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 22
An account can further divided down into ____________

A. ledgers
B. subaccounts
C. trial balance
D. subsidiary ledgers

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 23
Whenever we replenish petty cash, the debit goes to

A. Cash account
B. Income account
C. Expenses account
D. none of the above

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 24
You press F4 to enter

A. Purchase Voucher
B. Sales Voucher
C. Contra Voucher
D. Inventory Voucher

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 25
What is this section in Tally called?
A. Main Screen of Tally
B. Major Section of Tally
C. Gateway of Tally
D. First Screen of Tally

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 26
In Gold Edition of Tally you may create

A. 10 users
B. 20 users
C. 50 users
D. unlimited users

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 27
A strong internal control system is required in the computerized environment because

A. Financial information is often generated automatically by systems based on data previously entered
B. Errors may go undetected because of reduced human involvement
C. Errors in processing may be applied to a large number of transactions without being noticed
D. All of the above

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 28
Concentration on the input and output from the computer rather than what happens in the computer is called

A. auditing around the computer

B. auditing through the computer
C. auditing throught the print report
D. auditing through CAAT

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 29
"Input records must follow a particular order", this input control is called:

A. serial check
B. sequence check
C. consistency check
D. validity check

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 30
If a banking software keeps record of all the scheduled financial activities run without human involvement, you
may call the record as

A. Audit Log
B. Log of Automatic Transactions
C. Audit Trial
D. Transaction Log

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 31
Where all inter-module dependencies are tested together, you call it

A. Incremental Testing
B. Static Analysis Test
C. Dynamic Analysis Test
D. Big Bang Testing

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 32
When you compare current data with a trend or pattern as a basis for evaluating reasonableness, you call it

A. modelling
B. comparative analysis
C. due dilligence
D. corroborative testing

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 33
If you design a control that prevents deleting key values from related tables, you call it

A. transaction integrity
B. referential integrity
C. entity integrity
D. deleting protection

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 34
Source code cannot be read by human to interpret its meaning.

A. True
B. False
Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 35
This figure represents:

A. Black Box Approach

B. White Box Approach
C. Transparent Approach
D. Clear Box Approach

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 36
In system testing, the __________ originate from a source other than that of the original program.

A. parallel program
B. parallel process
C. new program
D. alternative program

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 37
Which of the following is not an objectives of the source-code review:

A. Identify unauthorized code

B. Identify inefficient code
C. Identify standard code
D. Identify ineffective code

Correct Answer: C
Section: (none)
Explanation
Explanation/Reference:

QUESTION 38
Audit Trail may be used for

A. Individual Accountability
B. Reconstructing Events
C. Intrusion Detection
D. All of the above

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 39
_____________are built-in test environments within a system.

A. System control audit review file

B. Transaction tagging
C. Audit Modules
D. Integrated test facilities

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 40
You can change the Company Information from

A. Company Info > Back up

B. Company Info > Alter
C. Company Info > Split Company Data
D. None of the above

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference: