FINALS (Audit Theory)
1. In determining determining the primary primary responsib responsibilit ility y of the external external auditor auditor for an audit of a company’s nancial statements, the auditor owes primary allegiance to: a. Stockhold Stockholders, ers, credito creditors rs and the inestin inesting g public public b. !he management management of of the audit audit client client because because the auditor auditor is hired hired and paid by management c. !he "uditing "uditing and "ssuranc "ssurance e Standards Standards #ouncil #ouncil becaus because e it determines determines auditing standards and auditor’s responsibility d. !he audit audit committee committee of the audit audit client client because because the committ committee ee is responsible for coordinating and reiewing all audit actiities within the company. $. "n audit inoles inoles ascertaini ascertaining ng the degree degree of correspond correspondence ence between between assertions and established criteria. In the case of an audit of nancial statements, which of the following would not be a alid criterion a. Internatio International nal "ccounti "ccounting ng Standard Standards s b. %hilippine %hilippine &inanc &inancial ial 'eport 'eporting ing Standard Standards s (%&'S) c. *eneral *enerally ly accepte accepted d auditing auditing standa standard rds s d. %&'S %&'S for for S+ S+s s -. +ost of the indep independent endent audito auditor’s r’s work in in formulati formulating ng an opinion opinion on nancial statements consists of a. Studying Studying and ealuating ealuating internal internal contr control ol b. btain btaining ing and and examin examining ing eide eidence nce c. xamin xamining ing cash cash tran transac sactio tions ns d. #omparing #omparing recor recorded ded account accountabil ability ity with with assets assets /. 0hich of the follow following ing is more more dicult dicult to ealuate ealuate ob2ectie ob2ectiely3 ly3 a. ciency ciency and e4ectienes e4ectieness s of of operat operations ions b. #omplianc #ompliance e with applic applicable able goernm goernment ent regulati regulations ons c. %resentat %resentation ion of nancial nancial statement statements s in accordance accordance with with the applicab applicable le nancial reporting criteria d. "ll the gien gien criteria criteria are e5ually e5ually dicult dicult to ealuate ealuate ob2ecti ob2ectiely ely 6. "n audit that that inoles inoles obtaining obtaining and ealuatin ealuating g eidence eidence about the eciency and e4ectieness of an entity’s operating actiities in relation to specied ob2ecties is a (n) a. xte xterrnal nal aud audit it b. #o #omp mpli lian ance ce audi auditt c. pera perati tion onal al audi auditt d. &inanci inancial al state statemen mentt audit audit 7. 0hich of the following following statements statements is not distinction between independent auditors and internal auditors a. Independent Independent audito auditors rs represent represent third third party users users external external to the auditee entity, whereas internal auditors report directly to management
b. "lthough independent auditors strie for both alidity and releance, internal auditors are concerned almost exclusiely with alidity c. Internal auditors are employees of the auditee, whereas independent auditors are independent contractors. d. !he internal auditor’s span of coerage goes beyond nancial auditing to encompass operational and performance auditing 8. 0hich of the following has the primary responsibility for the fairness of the representations made in the nancial statements3 a. #lients’ management b. "udit committee c. Independent auditor d. 9oard of accountancy . "n audit of the nancial statements of ;+< #orporation is being conducted by an external auditor. !he external auditor is expected to a. xpress an opinion as to the fairness of ;+<’s nancial statements b. xpress an opinion as to the attractieness of ;+< for inestment purposes c. #ertify the correctness of ;+<’s nancial statements d. xamine all eidence supporting ;+<’s nancial statements =. 0hich of the following statements about independent nancial statement audit is correct3 a. !he audit of nancial statements reliees management of its responsibilities for the nancial statements b. "n audit is designed to proide limited assurance that the nancial statements taken as a whole are free from material misstatement c. !he procedures re5uired to conduct an audit in accordance with %S"s should be determined by the client who engaged the serices of the auditor d. !he authors’ opinion is not an assurance as to the future iability of the entity as well as the e4ectieness and eciency with which management has conducted the a4airs of the entity 1>.!he primary purpose of an independent nancial statement audit is to a. %roide a basis for assessing management’s performance b. #omply with goernment regulatory re5uirements c. "ssure management that the nancial statements are unbiased and free from material error d. %roide users with an unbiased opinion about the fairness of information reported in the nancial statement 11.Independent auditors of nancial statements perform audits that reduce and control a. !he business risks faced by inestors b. !he information risk faced by inestors c. !he complexity of nancial statements d. ?ualify reiews performed by other #%" rms
1$.In @auditingA accounting data, the concern is with a. Betermining whether recorded information properly reCects the economic eents that occurred during the accounting period. b. Betermining if fraud has occurred c. Betermining if taxable income has been calculated correctly d. "nalyDing the nancial information to be sure that it complies with goernment re5uirements 1-.!he a. b. c. d.
expertise that distinguishes auditors from accountants is in the "bility to interpret nancial reporting standards 'e5uirement to possess education beyond the 9achelor’s degree "ccumulation and interpretation of eidence "bility to interpret %"S
1/."n audit of nancial statements is conducted to determine if the a. rganiDation is operating eciently and e4ectiely b. "uditee is following specic procedures or rules set down by some higher authority c. erall nancial statements are stated in accordance with specied criteria d. Eone of the aboe 16."n audit can hae a signicant e4ect on a. Information risk b. 9usiness risk c. !he riskFfree interest rate d. "ll of these 17.0hen a professional accountant learns of a material error or omission in a tax return of a prior year, heGshe has the responsibility to do the following, except a. %romptly adise the client or employer of the error or omission and recommend that disclosure be made to the reenue authorities. b. %romptly inform the reenue authorities een without the permission of the client. c. "dice the employer to correct the error and recommend that disclosure be made to the reenue authorities. d. #onsider discontinuing the association with the client if the client does not correct the error. 18. !his threat to independence occurs when a rm or a member of the assurance rm has a direct nancial interest or material indirect nancial interest in an assurance client. a. b. c. d.
SelfFreiew threat. "docacy threat. Intimidation threat. SelfFinterest threat.
1. In which of the following situations would a public accounting rm hae iolated the code of ethics in determining its fee3 a. " fee is based on whether or not the public accounting rm’s audit report leads to the approal of the client application for bank is nancing. b. " fee is to be established at a later date by the 9ankruptcy #ourt. c. " fee is based upon the nature of the engagement rather than upon the actual time spent on the engagement. d. " fee is based on the fee charged by the client’s former auditors. 1=. " public accounting rm would least likely be considered in iolation of the independence rules in which of the following instances3 a. " partner’s checking account, which is fully insured by the %hilippine Beposit Insurance #orporation, is held at a nancial institution for which the public accounting rm performs attest serices. b. " manager of the rm donates serices as ice president of a charitable organiDation that is an audit client of the rm. c. "n attest client owes the rm fees for this and last year’s annual engagement. d. " coered member’s dependent son owns stock in an attest client. $>. ;uan, #%", has a public accounting practice. He wishes to establish a separate to o4er data processing serices to the public and other public accountants. a. ;uan cannot be a partner in any separate partnership which o4ers data processing serices. b. ;uan may form a separate partnership c. ;uan may form a separate partnership as long as partners are #%"s. d. ;uan may form a separate partnership, but he must gie up his public accounting practices $1. !he auditors responsibility for failure to detect fraud arises a. 0hen such failure clearly results from failure to comply with auditing standards. b. 0heneer the amounts inoled are material. c. nly when the examination was specically designed to detect fraud. d. nly when such failure clearly results from negligence so gross as to sustain an interference of fraud on the part of the auditor. $$. !he risk that the audit will fail to uncoer a material misstatement is eliminated a. b. c. d.
If client has good internal control. If client follows nancial reporting standards. 0hen the auditor has complied with Standards on "uditing. Jnder no circumstances.
$-. +ost accounting and auditing professionals agree that when an audit has failed to uncoer material misstatements, and the wrong type of audit opinion is issued, the audit rm a. b. c. d.
has failed to follow Standards on "uditing. deseres to lose the lawsuit. should be asked to defend the 5uality of the audit. should not be held responsible for the nancial loss su4ered by others.
$/. In rare cases auditors hae been held liable for criminal acts. " criminal coniction against an auditor can result only when it is demonstrated that the auditor a. b. c. d.
0as negligent. 0as grossly negligent. Intended to deceie or harm others. #aused a nancial loss to an innocent thirdFparty.
$6. 0hen a business is unable to repay its lenders because of economic conditions, such as recession, it su4ers from a. b. c. d.
9usiness failure. "udit failure. "udit risk. "ll of these.
$7. !he primary reason why a #%" rm establishes 5uality control policies and procedures for human resources is to a. comply with the continuing educational re5uirements imposed for all sta4 accountants in #%" rms. b. establish in fact as well as in appearance that sta4 accountants are increasing their knowledge of accounting and auditing matters. c. proide a forum for sta4 accountants to exchange their experiences and iews concerning rm policies and procedures. d. proide reasonable assurance that sta4 personnel will hae the capability, competence and commitment to ethical principles re5uired to enable them to fulll their responsibilities in accordance with professional standards and regulatory and legal re5uirements. $8. In pursuing its 5uality control ob2ecties with respect to assigning personnel to engagements, a #%" rm may use policies and procedures such as the following
a rotating employees from assignment to assignment on a random basis . to aid in the sta4 training e4ort. b re5uiring timely identication of the sta4 re5uirements of specic . engagements so that enough 5ualied personnel can be made aailable. c allowing sta4 to select the assignments of their choice to promote . better client relationships. d assigning a number of employees toeach engagement in excess of the . number re5uired so as not to oerburden the sta4 and interfere with the 5uality of the audit work performed.
$. !he accounting rm should establish policies and procedures assigned to promote an internal culture based on the recognition that 5uality is essential in performing engagements. !his may be communicated through the following means except a !raining seminars. . b &ormal and informal dialogue. . c %ublication in %I#%" newsletter. . d +ission statements. . $=. !he primary factor that should be considered in determining the extent of superision needed by an assistant is the assistant’s a. 0illingness to exercise due care b. #ompetence c. %rofessional certication d. Independence ->. !he primary purpose of establishing 5uality control policies and procedures for deciding whether to accept a new client is to a. nable the #%" rm to attest to the integrity of the client management.
b. Satisfy the #%" rm’s duty to the public concerning the acceptance of new clients. c. +inimiDe the likelihood of association with clients whose management lacks integrity. d. "nticipate before performing any eld work whether an unmodied opinion can be expressed. -1.!his inoles deeloping an oerall strategy for the expected conduct and scope of the examinationK the nature, extent, and timing of which ary with the siDe and complexity, and experience with and knowledge of the entity a. "udit planning b. "udit procedure c. "udit program d. "udit working pen -$.0hich of the following procedures would a #%" ordinarily perform during audit planning3 a. btain understanding of the client’s business and industry b. 'eiew the client’s bank reconciliation c. btain client’s representation letter d. 'eiew and ealuate client’s internal control --.arly appointment of the independent auditor will enable: a. " more thorough examination to be performed. b. " proper study and ealuation of internal control to be performed. c. Sucient competent eidential matter to be obtained. d. " more ecient examination to be planned. -/.!he audit team gathers information about a new client’s business and industry in order to obtain a. "n understanding of the clients internal control system for nancial reporting b. "n understanding of how economic eents and transactions a4ect the company’s nancial statements c. Information about engagement risk d. Information regarding whether the company is engaging in nancial statement fraud -6.!he risk that a material misstatement in an assertion will not be preented or detected on a timely basis by internal control is a. Betection risk b. #ontrol risk c. Inherent risk d. "udit risk -7.0hich of the following may represent the bigger challenge smaller public companies face in implementing e4ectie control3 a. lack of expertise b. 'educed importance c. Limited resources
d. Limited aailable guidance -8." small entity may use less formal means to ensure that internal control ob2ecties are achieed. &or example, extensie accounting procedures, sophisticated accounting records, or formal controls are least likely to be needed if a. +anagement is closely inoled in operations b. !he entity is inoled in complex transactions c. !he entity is sub2ect to legal or regulatory re5uirements, also found in larger entities d. &inancial reporting ob2ecties hae been established -.0hich of the following best describes the purpose of control actiities3 a. !he actions, policies and procedures that reCect the oerall attitude of management b. !he identication and analysis of risk releant to the preparation of nancial statements c. !he policies and procedures that help ensure that necessary actions are taken in order to achiee the entity’s ob2ecties d. "ctiities that deal with the ongoing assessment of the 5uality of internal control by management -=.0hich of the following actiities would be least likely to strengthen a company’s internal control3 a. Separating accounting from other nancial operations b. +aintaining insurance for re and theft c. &ixing responsibility for the performance of employee duties d. #arefully selecting and training employees />.%roper segregation of functional responsibilities in an e4ectie structure of internal control calls for separation of the functions of a. "uthoriDation, execution and payment b. "uthoriDation, recording and custody c. #ustody, execution and reporting d. "uthoriDation, payment and recording
/1.+aterial misstatements may emanate from all of the following except a. fraud b. limitations of the audit c. error d. nonFcompliance with laws and regulations /$."n intentional act by one more indiiduals among management, employees, or third parties which results in misrepresentation of nancial statement refers to a. rror
b. Eoncompliance c. &raud d. Illegal acts /-.!he responsibility for the detection and preention of errors, fraud and noncompliance with laws and regulations rests with a. "uditor b. #lient’s legal counsel c. #lient +anagement d. Internal auditor //.0hen the auditor assesses inherent risk, he considers among others the following factors except a. Integrity of management b. Eature of the entity’s business c. Jnusual pressures on management d. 'esults of the interim tests /6.!he reenue cycle of a company generally includes these accounts: a. Inentory, accounts payable, and general expenses b. Inentory, general expenses, and payroll c. #ash, accounts receiable, and sales d. #ash, notes payable, and capital stock /7."ll of the following are parts of corporate goernment except: a. ersight of the management by the board of directors b. stablished processes to proide accountability to stockholders. c. 0histleFblowing processes. d. Independent reiew of nancial statements by the S#. /8.0hich of the following would not be correct regarding corporate goernance failures that took place in the past two decades3 a. 9oards of director approe stock option plans that did not align management and shareholder ob2ecties. b. "udit committees met infre5uently, often for only an hour at a time. c. 9oards of directors were often dominated by management. d. "ccounting rules became more specic to address the complexities that existed in new transaction. /.0hich of the following is an appropriate description of management’s role in preparing nancial statements and reports on internal control oer nancial reporting3 +anagement has the primary responsibility for: a. Betermining the scope of internal and external audit actiities. b. %reparing nancial statements that are fairly presented in accordance with %&'S. c. Selecting accounting principles that best portray the economic reality of the organiDation’s transaction and current state. d. Beeloping, implementing, and assessing the internal control processes oer nancial reporting.
/=.0hich of the following would not be re5uired to be communicated to the audit committee by the outside auditor3 a. Signicant audit ad2ustments made during the course of the audit. b. Signicant disagreement with management regarding accounting principles c. !he auditor’s knowledge of management’s consultation with other public accounting rms regarding the proposed treatment of a controersial accounting item. d. !he extent to which the internal auditors assisted in the conduct of the audit. 6>.!he applications of due professional care means that the auditor’s work conforms with all of the following except: a. #urrent auditing standards as dened by %hilippine standards on auditing (%S"s). b. !he work that a reasonable prudent auditor would hae performed in the same situation. c. !he work that would hae been performed by a reasonable person who was not necessarily trained in auditing. d. !he work was at least e5ual to that which had been performed on the audit engagement during the preceding year. 61.0hich of the following best describes the primary purpose of audit procedures3 a. b. c. d.
!o detect errors or irregularities !o comply with nancial reporting standards !o gather corroboratie eidence !o erify the accuracy of account balances
6$."s a result of analytical procedures, the independent auditor determines that the gross prot has declined from ->M in the preceding year to $>M in the current year. !he auditor should a. Bocument management’s intentions with respect to plans for reersing this trend b. aluate management’s performance in causing this decline c. 'e5uire footnote disclosure d. #onsider the possibility of an error in the nancial statements 6-.!he auditor will most likely to perform extensie tests for possible understatement of a. 'eenues b. "ssets c. Liabilities d. #apital 6/.0hich of the following elements ultimately determines the specic auditing procedures necessary under the circumstances to a4ord a reasonable basis for an opinion3 a. "uditor 2udgment b. +ateriality
c. 'elatie risk d. 'easonable assurance 66.In testing the existence assertion for an asset, an auditor ordinarily works from the a. &inancial unrecorded items to the nancial statement b. %otentially unrecorded items to the nancial statement c. "ccounting records to the supporting eidence d. Supporting eidence to the accounting records 67.!he information obtained by the auditor in arriing at the conclusions on which the audit opinion is based is called: a. "udit working papers b. "udit assertions c. "udit eidence d. "udit standards 68.!he ma2or reason an independent auditor gathers eidence is to a. &orm an opinion on the nancial statements b. Betect fraud c. aluate management d. aluate internal control 6.0hich of the following is the best example of a corroborating eidence a. *eneral 2ournal b. 0orksheet cost allocations c. .0hich of the following is correct about the appropriateness of eidence3 a. "udit eidence from external sources is more releant than eidence generated internally b. "udit eidence is more persuasie when items of eidence from di4erent sources or of di4erent nature are not consistent c. "udit eidence generated internally is more reliable when the related accounting and internal control systems are e4ectie d. Suciency refers to the amount of eidence needed 71.In an audit sampling application, an auditor:
a
%erforms procedures on all the items in a balance and makes a conclusion about the whole balance. b Performs procedures on less than 100 percent of the items in a balance and formulates a conclusion about the hole balance! c %erforms procedures on less than 1>> percent of the items in a class of transactions for the purpose of becoming familiar with the client’s accounting system. d %erforms analytical procedures on the client’s unaudited nancial statements when planning the audit. 7$."uditors consider statistical sampling to be characteriDed by the following: a 'epresentatie sample selection and nonmathematical consideration of the results. b #arefully biased sample selection and statistical calculation of the results. c "epresentati#e sample selection and statistical calculation of the results! d #arefully biased sample selection and nonmathematical consideration of the results . 7-.In audit sampling applications, sampling risk is: a #haracteristics of statistical sampling applications but not of nonF statistical applications. b !he probability that the auditor will fail to recogniDe erroneous accounting in the client’s documentation. c %robability that accounting errors will arise in transactions and enter the accounting system. d The probability that an auditor$s conclusion based on a sample mi%ht be di&erent from the conclusion based on an audit of the entire population! 7/.0hich of the following should be considered an audit procedure for obtaining eidence3 a "n audit sampling application in accounts receiable selection. b !he accounts receiable exist and are alued properly. c Sendin% a ritten con'rmation on a customer$s account balance! d EonFstatistical consideration of the amount of di4erence reported by a customer on a conrmation response. 76.0hich of the following elements in the audit risk model isGare a product of the auditors’ professional 2udgment3 a #ontrol risk, b "nalytical procedure risk. c !est of details risk of incorrect acceptance. d All of the abo#e! 77."n auditor is reiewing internal control for accounts receiable:
I II
!he billing function should not be assigned to the person who is responsible for maintaining accounts receiable records. II. 'esponsibility for approal of the writeFo4 of accounts receiable that are uncollectible should not be assigned to the cashier.
a. nly I is true b. nly II is true
c! oth I and II are true d. Eeither I nor II is true
78.Statistical sampling may be applied to test controls when a client’s control procedures a. Bepend primarily on segregation of duties. b. "re carefully reduced to writing and are included in client accounting manuals. c! Lea#e an audit trail as e#idence of compliance! d. nable the detection of fraud. 7.!he deiation rate the auditor will permit in the population and still be willing to reduce the assessed leel of control risk is called the c. "cceptable risk of oerF a! Tolerable de#iation rate reliance b. stimated population deiation rate d. Sample deiation rate 7=.0hich of the following statements is correct3 a. !he expected population deiation rate has little or no e4ect on sample siDe. b. "s the population siDe doubles, the sample siDe also should double. c. &or a gien tolerable rate, a larger sample siDe should be selected as the expected population deiation rate decreases. d! The population sie has little or no e&ect on sample sie e*cept for #ery small populations! 8>.&or which of the following audit tests would an auditor most likely use attribute sampling3 a. +aking an independent estimate of the amount of a &I& inentory. b. xamining inoices in support of the aluation of xed asset additions. c. Selecting accounts receiable for conrmation of account balances. d! Inspectin% employee time cards for proper appro#al by super#isors 81.0hich of the following would be the best protection for a company that wishes to preent the @lappingA of trade accounts receiable3 a. Segregate duties so that the bookkeeper in charge of the general ledger has no access to incoming mail. b. Segregate duties so that no employee has access to both checks from customers and currency from daily cash receipts. c. Hae customers send payments directly to the company’s depository bank. d. 'e5uest that customers’ payment checks be made payable to the company and addressed to the treasurer.
8$.0hich of the following controls would be most e4ectie in assuring that recorded purchases are free of material errors3 a. !he receiing department compares the 5uantity ordered on purchase orders with the 5uantity receied on receiing reports. b. >, but the inoice was entered as N$,6>> in the sales 2ournal and similarly posted to the general ledger and accounts receiable ledger. !he customer remitted only N$,6>>, the amount on hisGher monthly statement. !he most e4ectie procedure for preenting this type of error is to a. Jse predetermined totals to control posting routines. b. Hae an independent check of sales inoice serial numbers, prices, discounts, extensions, and footings. c. Hae the bookkeeper prepare monthly statements that are eried and mailed by a responsible person other than the bookkeeper.
d. Hae a responsible person who is independent of the accounts receiable department promptly inestigate unauthoriDed remittance deductions made by customers or other matters in dispute. 8.!he authority to accept incoming goods in receiing should be based on a(an) a. endor’s inoice b. materials re5uisition c. bill of lading d. approed purchase order 8=.0hich of the following controls most likely would be e4ectie in o4setting the tendency of sales personnel to maximiDe sales olume at the expense of high bad debt write o4s3 a. mployees responsible for authoriDing sales and bad debt write o4s are denied access to cash. b. Shipping documents and sales inoices are matched by an employee who does not hae authority to write o4 bad debts. c. mployees inoled in the credit granting function are separated from the sales function. d. Subsidiary accounts receiable records are reconciled to the control account by an employee independent of the authoriDation of credit. >.0hich of the following controls most likely would help ensure that all credit sales transactions of an entity are recorded3 a. !he billing department superisor sends copies of approed sales orders to the credit department for comparison to authoriDed credit limits and current customer account balances. b. !he accounting department superisor independently reconciles the accounts receiable subsidiary ledger to the accounts receiable control account monthly. c. !he accounting department superisor controls the mailing of monthly statements to customers and inestigates any di4erences reported by customers. d. !he billing department superisor matches preFnumbered shipping documents with entries in the sales 2ournal 1." procedure that directly test accounts or classes of transactions to detect material monetary errors or misstatements in nancial statement assertions. a "nalytical %rocedures b Substanti#e Test c !est of !ransaction d !est of 9alances $.&or eciency, tests of controls are fre5uently done at the same time as: a "nalytical %rocedure b #ompliance test c Test of transaction d !est of balances
-.0hich of the following procedures are fre5uently performed in response to the auditor’s assessment of the risk of material misstatement3 a 'atio "nalysis b !est of controls c Test of details of balances d 'isk assessment procedure /.!he primary emphasis in most tests of details of balances is on the: a alance sheet accounts b 'eenue accounts c #ash Cow statement accounts d xpense account 6.!ests of !ransactions are used to determine whether OOOOOOOOO hae been satised. a #ompliance test re5uirements b 9alance coerage re5uirements c Transaction+related audit ob,ecti#es d xistence assertions 7." listing of all the things which the auditor will do to gather sucient, competent eidence is the: a "udit strategy b Audit pro%ram c "udit procedure d "udit risk model 8.+eans the record of audit procedures performed, releant audit eidence obtained, and conclusions the auditor reached. It is also called working paper. a "udit le b 'isk assessment c Audit documentation d 'atio "nalysis .0hich of the following is not a type of audit program a Standard allFpurpose b !ailorFmade audit program c +odied standard form d Supportin% Schedule =.It include symbols in the working paper that describe the audit procedures performed a Heading b Tic- .ar-s c #ross referencing d Indexing
=>.!he following are circumstances where professional accountants are or may be re5uired to disclose condential information. 0hich of the following is not included3 a Bisclosure is re5uired by law b !here is a professional duty or right to disclose, when not prohibited by law c /isclosure is reuired by third party d Bisclosure is permitted by law and is authoriDed by the client or the employer =1.0hat is the computer process called when data processing is performed concurrently with a particular actiity and the results are aailable soon enough to inCuence the particular course of actions being taken or the decision being made3 a. "eal+time processin% b. 9atch processing c. 'andom "ccess %rocessing d. Integrated data %rocessing =$."ll actiity related to a particular application in a manual system is recorded in a 2ournal. !he name of the corresponding item in a computeriDed system is a a. +aster le c! transaction 'le b. PearFtoFdate le d. current balance le =-.!he initial debugging of a computer program should normally be done by the a. %rogrammer c. machine operator b. Internal auditor d! control %roup =/.!he purpose of using generaliDed computer programs is to test and analyDe a client’s computer a. Systems c! records b. 5uipment d. processing logic =6.0hich of the following is not a ma2or reason for maintaining an audit trail for a computer system a. Beterrent to fraud c. analytical procedures b. +onitoring purposes d! uery anserin% =7.0hich of the following employees normally would be assigned the operating responsibility for designing a computeriDed accounting system, including documentation of application systems3 a. #omputer programmer b. Bata processing manager c! Systems analyst d. Internal auditor
=8.0hen erroneous data are detected by computer program controls, such data may be excluded from processing and printed on an error report. !he error report should most probably reiewed and followed up by the a! ontrol %roup b. Systems analyst c. Superisor of computer operation d. #omputer programmer =." procedural control used in the management of a computer center to minimiDe the possibility of data or program le destruction through operator error includes a. #ontrol gures. b. #rossFfooting tests. c. Limit checks. d! 2*ternal labels! ==.!otals of amounts in computerFrecord data elds which are not usually added but are used only for data processing control purposes are called a. 'ecord totals b! 3ash totals c. %rocessing data totals d. &ield totals 1>>. In updating a computeriDed accounts receiable le, which one of the following would be used as a batch control to erify the accuracy of the posting of cash receipts remittances3 a. !he sum of the cash deposits plus the discounts less the sales returns. b. !he sum of the cash deposits. c. !he sum of the cash deposits less the discounts taken by customers. d. The sum of the cash deposits plus the discounts ta-en by customers!
