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Flashcards in Audit 14 Deck (20)
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The employee managing the computer software (custody) should not be responsible for what

debugging ( authorization)


Controls in a computer environment provide assurance that

transactions are authorized and that all authorized transactions are processed


What and when are the advantages of using IT for Internal Control

- Enhanced timeliness of data
- very effective with large volumes of similar items


What is a remote node router

device used to connect two networks


What is a frame relay protocol

This is a method pf transporting dat over a wide area network


What are reasons for maintaining an audit trail

- a deterrent to fraus - because you can trace transactions from beginning to end

- assists in monitoring as it allows an auditor to look back at transactions to determine if they have been processed correctly

- They facilitate query answering - allowing someone to trace a transact ion from beginning to end to repent to a query


What is a hash total

The sum of a column of values that have no meaning other than as an identifier (802)

- example a total of part numbers - which doesn't have a meaningful quantity, but may indicate that all line items on an invoice have been entered.


What is an embedded audit node

an audit system that is inserted into the clients system so that it can apply audit procedures to data as it is being processed


What is a snapshot application

applying procedures to s specific set of data or at a specific point in time


What is an integrated data check

This involves integrating data with the client's data so that the auditor can see hoe yje client's system processes it


What is a test data generator

This is used to develop data to be run through the client's system to test it


When doing a GAS - GAGAS and detect noncompliance that have material effect - what should you express in your report on compliance

A qualified or adverse opinion


If not already done, during the review stage - the auditor should perform A/P on which transaction cycle



What step is performed first in applying A/P

develop an expectation of a balance or ratio by using relationships that are expected to exist


Assessing CR below the max would involve

Identifying control policies and procedure relevant to specific assertions. They are then evaluated to determine whether or not they adequately support the assertions to enable the auditor to reduce the nature, timing or substantive testing


What is a performance indiction

These involve comparing results to expectations. Example - inventory. The qualities in records is the amount EXPECTED to have on hand. This is compared to the physical count- the ACTUAL or results - this makes it a performance indicator


What is physical control - Control Activity

This involved LIMITING the physical access to resources to those with authority


What is Information Processing Control

- These are procedures that are REQUIRED to be followed including authorizations received and paperwork completed before a transaction will be processed


What is included in a standard bank confirmation

- Balances of deposit accounts and outstanding loans

- Provides info about arrangements related to compensating balances and collateral for loans

- it does NOT ordinarily provide info on the dates on which inactive accounts were closed


What is in an audit engagement letter

- objective and scope of engagement
- fees
-the assistance the auditor will require from client
- Will NOT Include an indication that advice given will be kept confidential because - they purpose is NOT to give advice