Auditing in a CIS Environment

1.Which control is not associated with new systems development activities?

a. reconciling program version numbers
b. program testing
c. user involvement
d. internal audit participation
2. Which test of controls will provide evidence that the system as originally implemented was free from
material errors and free from fraud? Review of the documentation indicates that
a. a cost-benefit analysis was conducted
b. the detailed design was an appropriate solution to the user's problem
c. tests were conducted at the individual module and total system levels prior to
implementation
d. problems detected during the conversion period were corrected in the maintenance phase

3. Routine maintenance activities require all of the following controls except

a. documentation updates
b. testing
c. formal authorization
d. internal audit approval

4. Which statement is correct?

a. compiled programs are very susceptible to unauthorized modification
b. the source program library stores application programs in source code form
c. modifications are made to programs in machine code language
d. the source program library management system increases operating efficiency

5. Which control is not a part of the source program library management system?
a. using passwords to limit access to application programs
b. assigning a test name to all programs undergoing maintenance
c. combining access to the development and maintenance test libraries
d. assigning version numbers to programs to record program modifications

6. Which control ensures that production files cannot be accessed without specific permission?
a. Database Management System
b. Recovery Operations Function
c. Source Program Library Management System
d. Computer Services Function

7. Program testing
a. involves individual modules only, not the full system
b. requires creation of meaningful test data
c. need not be repeated once the system is implemented
d. is primarily concerned with usability
 8. Which statement is not true?
a. An audit objective for systems maintenance is to detect unauthorized access to application
databases.
b. An audit objective for systems maintenance is to ensure that applications are free from
errors.
c. An audit objective for systems maintenance is to verify that user requests for maintenance
reconcile to program version numbers.
d. An audit objective for systems maintenance is to ensure that the production libraries are
protected from unauthorized access.
9. When the auditor reconciles the program version numbers, which audit objective is being tested?
a. protect applications from unauthorized changes
b. ensure applications are free from error
c. protect production libraries from unauthorized access
d. ensure incompatible functions have been identified and segregated

10. Which is not a level of a data flow diagram?

a. conceptual level
b. context level
c. intermediate level
d. elementary level

11. Which statement is not correct? The structured design approach

a. is a top-down approach
b. is documented by data flow diagrams and structure diagrams
c. assembles reusable modules rather than creating systems from scratch
d. starts with an abstract description of the system and redefines it to produce a more detailed
description of the system

12. The benefits of the object-oriented approach to systems design include all of the following except
a. this approach does not require input from accountants and auditors
b. development time is reduced
c. a standard module once tested does not have to be retested until changes are made
d. system maintenance activities are simplified

13. Which level of a data flow diagram is used to produce program code and database tables?
a. context level
b. elementary level
c. intermediate level
d. prototype level

14. Evaluators of the detailed feasibility study should not include

a. the internal auditor
b. the project manager
c. a user representative
d. the system designer
15. A cost-benefit analysis is a part of the detailed
a. operational feasibility study
b. schedule feasibility study
c. legal feasibility study
d. economic feasibility study

16. Examples of one-time costs include all of the following except

a. hardware acquisition
b. insurance
c. site preparation
d. programming

17. Examples of recurring costs include

a. software acquisition
b. data conversion
c. personnel costs
d. systems design

18. A commercial software system that is completely finished, tested, and ready for implementation is
called a
a. backbone system
b. vendor-supported system
c. benchmark system
d. turnkey system

19. Which of the following is not an advantage of commercial software? Commercial software
a. can be installed faster than a custom system
b. can be easily modified to the user’s exact specifications
c. is significantly less expensive than a system developed in-house
d. is less likely to have errors than an equivalent system developed in-house

20. Which step is least likely to occur when choosing a commercial software package?
a. a detailed review of the source code
b. contact with user groups
c. preparation of a request for proposal
d. comparison of the results of a benchmark problem

21. The output of the detailed design phase of the Systems Development Life Cycle (SDLC) is a
a. fully documented system report
b. systems selection report
c. detailed system design report
d. systems analysis report

22. The detailed design report contains all of the following except
a. input screen formats
b. alternative conceptual designs
 c. report layouts
d. process logic

23. System documentation is designed for all of the following groups except
a. systems designers and programmers
b. end users
c. accountants
d. all of the above require systems documentation

24. Which type of documentation shows the detailed relationship of input files, programs, and output files?
a. structure diagrams
b. overview diagram
c. system flowchart
d. program flowchart

25. Typical contents of a run manual include all of the following except
a. run schedule
b. logic flowchart
c. file requirements
d. explanation of error messages

26. Computer operators should have access to all of the following types of documentation except
a. a list of users who receive output
b. a program code listing
c. a list of all master files used in the system
d. a list of required hardware devices

27. Which task is not essential during a data conversion procedure?

a. decomposing the system
b. validating the database
c. reconciliation of new and old databases
d. backing up the original files

28. When converting to a new system, which cutover method is the most conservative?
a. cold turkey cutover
b. phased cutover
c. parallel operation cutover
d. data coupling cutover

29. Site preparation costs include all of the following except

a. crane used to install equipment
b. freight charges
c. supplies
d. reinforcement of the building floor

30. The testing of individual program modules is a part of

 a. software acquisition costs
b. systems design costs
c. data conversion costs
d. programming costs

31. When implementing a new system, the costs associated with transferring data from one storage medium
to another is an example of
a. a recurring cost
b. a data conversion cost
c. a systems design cost
d. a programming cost

32. An example of a tangible benefit is

a. increased customer satisfaction
b. more current information
c. reduced inventories
d. faster response to competitor actions

33. An example of an intangible benefit is

a. expansion into other markets
b. reduction in supplies and overhead
c. more efficient operations
d. reduced equipment maintenance

34. A tangible benefit

a. can be measured and expressed in financial terms
b. might increase revenues
c. might decrease costs
d. all of the above

35. Intangible benefits

a. are easily measured
b. are of relatively little importance in making information system decisions
c. are sometimes estimated using customer satisfaction surveys
d. when measured, do not lend themselves to manipulation

36. Which technique is least likely to be used to quantify intangible benefits?

a. opinion surveys
b. simulation models
c. professional judgment
d. review of accounting transaction data

37. The formal product of the systems evaluation and selection phase of the Systems Development Life Cycle
is
a. the report of systems analysis
b. the systems selection report
 c. the detailed system design
d. the systems plan

38. One time costs include all of the following except

a. site preparation
b. insurance
c. programming and testing
d. data conversion

39. Typically a systems analysis

a. results in a formal project schedule
b. does not include a review of the current system
c. identifies user needs and specifies system requirements
d. is performed by the internal auditor

40. A disadvantage of surveying the current system is

a. it constrains the generation of ideas about the new system
b. it highlights elements of the current system that are worth preserving
c. it pinpoints the causes of the current problems
d. all of the above are advantages of surveying the current system

41. Systems analysis involves all of the following except

a. gathering facts
b. surveying the current system
c. redesigning bottleneck activities
d. reviewing key documents

42. The systems analysis report does not

a. identify user needs
b. specify requirements for the new system
c. formally state the goals and objectives of the system
d. specify the system processing methods

43. After the systems analysis phase of the System Development Life Cycle (SDLC) is complete, the
company will have a formal systems analysis report on
a. the conceptual design of the new system
b. an evaluation of the new system
c. users’ needs and requirements for the new system
d. a comparison of alternative implementation procedures for the new system

44. The accountant’s role in systems analysis includes all of the following except
a. specify audit trail requirements
b. prepare data gathering questionnaires
c. suggest inclusion of advanced audit features
d. ensure mandated procedures are part of the design
45. The role of the steering committee includes
a. designing the system outputs
b. resolving conflicts that arise from a new system
c. selecting the programming techniques to be used
d. approving the accounting procedures to be implemented

46. Project planning includes all of the following except

a. specifying system objectives
b. preparing a formal project proposal
c. selecting hardware vendors
d. producing a project schedule

47. Aspects of project feasibility include all of the following except

a. technical feasibility
b. economic feasibility
c. logistic feasibility
d. schedule feasibility

47. Which of the following is not a tool of systems analysts?

a. observation
b. task participation
c. audit reports
d. personal interviews

49. When developing the conceptual design of a system,

a. all similarities and differences between competing systems are highlighted
b. structure diagrams are commonly used
c. the format for input screens and source documents is decided
d. inputs, processes, and outputs that distinguish one alternative from another are identified

50. The role of the accountant/internal auditor in the conceptual design phase of the Systems Development
Life Cycle includes all of the following except
a. the accountant is responsible for designing the physical system
b. the accountant is responsible to ensure that audit trails are preserved
c. the internal auditor is responsible to confirm that embedded audit modules are included in
the conceptual design
d. the accountant is responsible to make sure that the accounting conventions that apply to
the module are considered by the system designers

51. Recurring costs include all of the following except

a. data conversion
b. software maintenance
c. insurance
d. supplies
52. Strategic systems planning is important because the plan
a. provides authorization control for the Systems Development Life Cycle
b. will eliminate any crisis component in systems development
c. provides a static goal to be attained within a five-year period
d. all of the above

53. Project feasibility includes all of the following except

a. technical feasibility
b. conceptual feasibility
c. operational feasibility
d. schedule feasibility