MC Textbook ACCT 3222 Exam with accurate detailed
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answers
A software application will not allow a sale to be processed if a customer is over its credit limit.
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This is an example of:|| || || || ||
A. a detective control.
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B. a preventive control.
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C. an IT general control.
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D. an IT-dependent manual control. - ✔✔B. a preventive control
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The software application compares all sales invoices with underlying shipping information on the
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bills of lading and packing slips with sales invoices. If differences are revealed, a report is
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generated for review and follow-up by the billing supervisor. This is an example of:
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A. a detective control.
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B. a preventive control.
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C. an IT general control.
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D. an IT-dependent manual control. - ✔✔A. a detective control.
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ITGCs are important because they: || || || ||
A. prevent unauthorized personnel from having access to data and applications.
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B. impact the effectiveness of manual controls.
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C. prevent the reliability of electronic audit evidence.
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D. allow client staff to change programs without needing to receive authorization for the change. -
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✔✔A. prevent unauthorized personnel from having access to data and applications.
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,Which of the following represents an example of an IT application control?
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A. The assistant controller performs a monthly bank reconciliation and follow-up of unexpected
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outstanding items. ||
B. The accounts receivable manager reviews credit balances in accounts receivable quarterly to
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determine their causes. || ||
C. The software application compares all sales invoices with underlying shipping information on
|| || || || || || || || || || || || ||
the bills of lading and packing slips with sales invoices. If differences are revealed, a report is
|| || || || || || || || || || || || || || || || ||
generated for review and follow-up by the billing supervisor.
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D. All changes to software applications must be reviewed and approved by the department
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affected by the application. - ✔✔C. The software application compares all sales invoices with
|| || || || || || || || || || || || || ||
underlying shipping information on the bills of lading and packing slips with sales invoices. If
|| || || || || || || || || || || || || || ||
differences are revealed, a report is generated for review and follow-up by the billing supervisor.
|| || || || || || || || || || || || || ||
An auditor is going to test the client's controls over bank reconciliations. The auditor will perform
|| || || || || || || || || || || || || || || ||
which of the following audit procedures for this test of controls?
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A. Software-based audit techniques using test data.
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B. Inquiry of the person performing the bank reconciliation.
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C. Reperformance of the bank reconciliation procedure.
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D. Inquiry of the person performing the bank reconciliation and reperformance of the bank
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reconciliation procedure. - ✔✔D. Inquiry of the person performing the bank reconciliation and
|| || || || || || || || || || || || ||
reperformance of the bank reconciliation procedure. || || || || ||
The auditor decides which controls to test by considering:
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A. the points at which error or fraud can occur.
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, B. the nature of controls implemented by management.
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C. the significance of each control in achieving its control objective.
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D. All of the answer choices are correct. - ✔✔D. All of the answer choices are correct.
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When obtaining an understanding of internal controls, the auditor identifies important
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programmed application controls over the occurrence of sales. However, the auditor has serious
|| || || || || || || || || || || || ||
concerns about the adequacy of the control environment due to a weak tone at the top about
|| || || || || || || || || || || || || || || || ||
control consciousness. Which of the following best describes how the auditor should respond to
|| || || || || || || || || || || || || ||
this situation when planning tests of controls related to the occurrence of sales?
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A. The auditor could assess control risk as low for an assertion after performing software-based
|| || || || || || || || || || || || || || ||
audit techniques on controls relevant to that assertion.
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B. The auditor could assess control risk as low for an assertion after performing software-based
|| || || || || || || || || || || || || || ||
audit techniques on controls relevant to that assertion and assessing the adequacy of segregation
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of duties.
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C. The auditor will probably assess control risk at the maximum irrespective of the quality of the
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programmed applic - ✔✔C. The auditor will probably assess control risk at the maximum || || || || || || || || || || || || || ||
irrespective of the quality of the programmed application controls. || || || || || || || ||
Which of the following would require the auditor to increase the level of control testing for a
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particular control? ||
A. The control is performed monthly instead of daily.
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B. There are several controls relating to a particular audit objective.
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C. The WCGW addressed by the control is not very important.
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D. A high degree of reliance is to be placed on the control to limit the amount of substantive
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procedures required. - ✔✔D. A high degree of reliance is to be placed on the control to limit the
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amount of substantive procedures required. || || || ||
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answers
A software application will not allow a sale to be processed if a customer is over its credit limit.
|| || || || || || || || || || || || || || || || || || ||
This is an example of:|| || || || ||
A. a detective control.
|| || ||
B. a preventive control.
|| || ||
C. an IT general control.
|| || || ||
D. an IT-dependent manual control. - ✔✔B. a preventive control
|| || || || || || || || ||
The software application compares all sales invoices with underlying shipping information on the
|| || || || || || || || || || || || ||
bills of lading and packing slips with sales invoices. If differences are revealed, a report is
|| || || || || || || || || || || || || || || ||
generated for review and follow-up by the billing supervisor. This is an example of:
|| || || || || || || || || || || || ||
A. a detective control.
|| || ||
B. a preventive control.
|| || ||
C. an IT general control.
|| || || ||
D. an IT-dependent manual control. - ✔✔A. a detective control.
|| || || || || || || || ||
ITGCs are important because they: || || || ||
A. prevent unauthorized personnel from having access to data and applications.
|| || || || || || || || || ||
B. impact the effectiveness of manual controls.
|| || || || || ||
C. prevent the reliability of electronic audit evidence.
|| || || || || || ||
D. allow client staff to change programs without needing to receive authorization for the change. -
|| || || || || || || || || || || || || || ||
✔✔A. prevent unauthorized personnel from having access to data and applications.
|| || || || || || || || || || ||
,Which of the following represents an example of an IT application control?
|| || || || || || || || || || ||
A. The assistant controller performs a monthly bank reconciliation and follow-up of unexpected
|| || || || || || || || || || || || ||
outstanding items. ||
B. The accounts receivable manager reviews credit balances in accounts receivable quarterly to
|| || || || || || || || || || || || ||
determine their causes. || ||
C. The software application compares all sales invoices with underlying shipping information on
|| || || || || || || || || || || || ||
the bills of lading and packing slips with sales invoices. If differences are revealed, a report is
|| || || || || || || || || || || || || || || || ||
generated for review and follow-up by the billing supervisor.
|| || || || || || || ||
D. All changes to software applications must be reviewed and approved by the department
|| || || || || || || || || || || || || ||
affected by the application. - ✔✔C. The software application compares all sales invoices with
|| || || || || || || || || || || || || ||
underlying shipping information on the bills of lading and packing slips with sales invoices. If
|| || || || || || || || || || || || || || ||
differences are revealed, a report is generated for review and follow-up by the billing supervisor.
|| || || || || || || || || || || || || ||
An auditor is going to test the client's controls over bank reconciliations. The auditor will perform
|| || || || || || || || || || || || || || || ||
which of the following audit procedures for this test of controls?
|| || || || || || || || || ||
A. Software-based audit techniques using test data.
|| || || || || ||
B. Inquiry of the person performing the bank reconciliation.
|| || || || || || || ||
C. Reperformance of the bank reconciliation procedure.
|| || || || || ||
D. Inquiry of the person performing the bank reconciliation and reperformance of the bank
|| || || || || || || || || || || || || ||
reconciliation procedure. - ✔✔D. Inquiry of the person performing the bank reconciliation and
|| || || || || || || || || || || || ||
reperformance of the bank reconciliation procedure. || || || || ||
The auditor decides which controls to test by considering:
|| || || || || || || ||
A. the points at which error or fraud can occur.
|| || || || || || || || ||
, B. the nature of controls implemented by management.
|| || || || || || ||
C. the significance of each control in achieving its control objective.
|| || || || || || || || || ||
D. All of the answer choices are correct. - ✔✔D. All of the answer choices are correct.
|| || || || || || || || || || || || || || || ||
When obtaining an understanding of internal controls, the auditor identifies important
|| || || || || || || || || || ||
programmed application controls over the occurrence of sales. However, the auditor has serious
|| || || || || || || || || || || || ||
concerns about the adequacy of the control environment due to a weak tone at the top about
|| || || || || || || || || || || || || || || || ||
control consciousness. Which of the following best describes how the auditor should respond to
|| || || || || || || || || || || || || ||
this situation when planning tests of controls related to the occurrence of sales?
|| || || || || || || || || || || ||
A. The auditor could assess control risk as low for an assertion after performing software-based
|| || || || || || || || || || || || || || ||
audit techniques on controls relevant to that assertion.
|| || || || || || ||
B. The auditor could assess control risk as low for an assertion after performing software-based
|| || || || || || || || || || || || || || ||
audit techniques on controls relevant to that assertion and assessing the adequacy of segregation
|| || || || || || || || || || || || || ||
of duties.
||
C. The auditor will probably assess control risk at the maximum irrespective of the quality of the
|| || || || || || || || || || || || || || || || ||
programmed applic - ✔✔C. The auditor will probably assess control risk at the maximum || || || || || || || || || || || || || ||
irrespective of the quality of the programmed application controls. || || || || || || || ||
Which of the following would require the auditor to increase the level of control testing for a
|| || || || || || || || || || || || || || || || ||
particular control? ||
A. The control is performed monthly instead of daily.
|| || || || || || || ||
B. There are several controls relating to a particular audit objective.
|| || || || || || || || || ||
C. The WCGW addressed by the control is not very important.
|| || || || || || || || || ||
D. A high degree of reliance is to be placed on the control to limit the amount of substantive
|| || || || || || || || || || || || || || || || || || ||
procedures required. - ✔✔D. A high degree of reliance is to be placed on the control to limit the
|| || || || || || || || || || || || || || || || || || ||
amount of substantive procedures required. || || || ||
