Risk Assessment and Internal Control – CIS Characteristics and Consideration

1. It exists when a computer of any type or size is involved in the processing by the entity
of financial information of significance to the audit, whether that computer is operated
by the entity or by a third party refers to:
a) Computer information system
b) Computer information system environment
c) Computer environment
d) Computer-assisted audit techniques

2. The use of computer may result in the design of systems that provide less visible
evidence that those using manual procedures. In addition, these systems may be
accessible by the larger number of persons. Systems characteristics that may results
from the nature of CIS processing include are, choose incorrect statement:
a) Absence of input documents.
b) Lack of visible transaction trail.
c) Lack of visible output.
d) Vulnerability of data and program storage media

3. The development of CIS will generally results in design and procedural characteristics
that are different for those found in manual systems. These different design and
procedural aspects of CIS include, except:
a) Consistency of performance.
b) Programmed controls procedures.
c) Single transactions update of multiple or data base computer files.
d) Changes to application systems

4. The purpose of general CIS controls is to establish a framework of overall control over
the CIS activities and to provide a reasonable level of assurance that the overall
objectives of internal control are achieved. General CIS controls may include, except:
a) Organizations and management controls.
b) Application systems development and maintenance controls.
c) Acquisition of application systems for third parties.
d) Computer operations control

5. Application systems development and maintenance control is:

a) Designed to establish an organizational framework over CIS activities.
b) Designed to provide reasonable assurance that systems are developed and
maintained in an authorized and efficient manner.
c) Designed to control the operation of the systems and provide reasonable assurance.
d) Designed to provide reasonable assurance that systems software is acquired or
developed in an authorized and efficient manner.

6. These are typically designed to establish control over application systems development
and maintenance, except.
a) Testing, conversion, implementation and documentation of new or revised systems
b) Changes to application systems
c) Access to systems documentations
d) Policies and procedures relating to control functions.

7. The following are the other CIS safeguards that contribute to the continuity of CIS
processing, except:
a) Offsite back-up of data and computer programs.
b) Recovery procedures for use in the event of theft, loss or intentional or accidental
destruction.
c) Provision for offsite processing in the event of disaster.
d) Documentation of the program in the case the programmer resigned.

8. The purpose of CIS application controls is to establish specific control procedures over
the accounting applications in order to provide reasonable assurance that all
transactions are authorized and recorded, and are processed completely, accurately, and
on a timely basis. CIS application controls include the following except:
a) Controls over input.
b) Controls over processing and computer data files.
c) Control over output.
 d) Manual controls exercised by the user.

9. Control over input are designed to provide reasonable assurance least likely include:
a) Transactions are properly authorized before being processed by the computer.
b) Transactions are accurately converted into machine-readable form and recorded in
the computer files.
c) Transaction are not lost, added, duplicated or improperly changed.
d) Results of processing are accurate.

10. Controls over processing and computer data files are designed to provide reasonable
assurance least likely include:
a) Transactions, including system-generated transactions are properly processed by
the computer.
b) Transactions are not lost, added, duplicated or improperly changed.
c) Access to output is restricted to authorized personnel.
d) Processing errors are identified and corrected on a timely basis.

11. Controls over output are designed to provide reasonable assurance least likely include:
a) Results of processing are accurate.
b) Access to output is restricted to authorized personnel.
c) Processing errors are identified and corrected on a timely basis.
d) Output is provided to appropriate authorized personnel on a timely basis.