441. Which of the following statement is not distinguishing feature for computer based processing and manual processing?
A. Errors in a CIS environment are less systematic as compared to error in manual processing.
B. The potential for human error in the CIS environment is greater as compared to manual system.
C. In a computer based accounting system, audit trail is in electronic form.
D. Computer processing offers management a variety of analytical tools.
442. To avoid invalid data input, a bank added an extra number at the end of each account number and subjected the new number to an algorithm. This technique is known as _______.
A. Dual read.
B. Test for reasonableness.
C. Check digit.
D. Occurrence of correction.
443. When computer programmed or files can be accessed from terminals, access can be limited to authorized individuals by __________.
A. appointing a librarian.
B. controlling passwords.
C. appointing EEP auditor.
D. Both (a) and (b).
444. Erroneous data has been detected by computer program controls. It has been excluded from processing and printed separately Error Report. Who should most probability by review and follow up on this report?
A. System analyst.
B. Data control group.
D. Computer operator.
445. General Controls will be ineffective when EDP Department ___________.
A. participates in computer software acquisition decisions.
B. design documentations for computerized operations.
C. originate changes in master files.
D. provide physical security for programme files.
446. Which of the following activities would most likely be performed by EDP department?
A. Authorizing transactions.
B. Parity checks.
C. Distributing output.
D. Correction of transaction errors.
447. The completeness of wages figure can be tested by comparing the number of time cards to be processed with transaction on wages sheet. This type of control techniques is called ___________.
A. Check total.
B. Control total.
C. Occurrence correction.
D. Check digit.
448. Which of the following will not affect audit in a CIS environment?
A. The objective of expression of opinion on financial statements.
B. Compliance procedures adopted by the auditor.
C. Performance of substantive procedures.
D. Evaluation of inherent risk and control risk.
449. Which of the following statement is not true of the test data approach in a test of computerized accounting system?
A. Test data tests only those controls which the auditor wished to rely.
B. Test data should consist of data related to all controls prevalent in the organisation.
C. The result of test data indicates that all the application and general controls are functioning properly.
D. Test data processed by the client computer programmed under the auditors control.
450. who is the custodian authority for audit working papers?
D. Managing director
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