Test Bank For Information Technology Auditing 4th Edition By James A. Hall

, ITtyAuditingty4thtyEd—
Test Bank, Chapter 1

Chapterty1—AuditingtyandtyInternaltyControl

TRUE/FALSE

1. Corporatetymanagementty(includingtythetyCEO)tymusttycertifytymonthlytyandtyannuallytytheirtyorganiza
tion‟styinternaltycontrolstyovertyfinancialtyreporting.

ANS:t y F PTS:t y t y 1

2. BothtythetySECtyandtythetyPCAOBtyrequiretymanagementtytotyusetythetyCOBITtyframeworktyfortyassessingt
yinternaltycontroltyadequacy.



ANS:t y F PTS:t y t y 1

3. BothtythetySECtyandtythetyPCAOBtyrequiretymanagementtytotyusetythetyCOSOtyframeworktyfortyassessingt
yinternaltycontroltyadequacy.



ANS:t y F PTS:t y t y 1

4. Atyqualifiedtyopiniontyontymanagement‟styassessmenttyoftyinternaltycontrolstyovertythetyfinancialtyreportingty
systemtynecessitatestyatyqualifiedtyopiniontyontythetyfinancialtystatements?

ANS:t y F PTS:t y t y 1

5. Thetysametyinternaltycontroltyobjectivestyapplytytotymanualtyandtycomputer-basedtyinformationtysystems.

ANS:t y T PTS:t y t y 1

6. Thetyexternaltyauditortyistyresponsibletyfortyestablishingtyandtymaintainingtythetyinternaltycontroltysystem.

ANS:t y F PTS:t y t y 1

7. Segregationtyoftydutiestyistyantyexampletyoftyantyinternaltycontroltyprocedure.

ANS:t y T PTS:t y t y 1


8. Preventivetycontrolstyaretypassivetytechniquestydesignedtytotyreducetyfraud.

ANS:t y T PTS:t y t y 1

9. At y keytymodifyingtyassumptiontyintyinternaltycontroltyistythattythetyinternaltycontroltysystemtyistythetyrespons
ibilitytyoftymanagement.

ANS:t y T PTS:t y t y 1

©ty2016tyCengagetyLearning®.t y Maytynottybetyscanned,tycopiedtyortyduplicatedtyortypostedtytotyatypubliclytyaccessibletywebsite,tyintywholetyortyintypart,tye
xcepttyfortyusetyastypermittedtyintyat y licensetydistributedtywithtyatycertaintyproducttyortyservicetyortyotherwisetyontyatypassword-
protectedtywebsitetyortyschool-approvedtylearningtymanagementtysystemtyfortyclassroomtyuse.

, ITtyAuditingty4thtyEd—
Test Bank, Chapter 1




10. WhiletythetySarbanes-OxleytyActtyprohibitstyauditorstyfromtyprovidingtynon-
accountingtyservicestytotytheirtyaudittyclients,tytheytyaretynottyprohibitedtyfromtyperformingtysuchtyservice
styfortynon-audittyclientstyortyprivatelytyheldtycompanies.

ANS:t y T PTS:t y t y 1

11. ThetySarbanes-OxleytyActtyrequirestythetyaudittycommitteetytotyhiretyandtyoverseetythetyexternaltyauditors.

ANS:t y T PTS:t y t y 1

12. Sectionty404tyrequirestythattycorporatetymanagementty(includingtythetyCEO)tycertifytytheirtyorganization‟styi
nternaltycontrolstyontyatyquarterlytyandtyannualtybasis.

ANS:t y F PTS:t y t y 1

13. Sectionty302tyrequirestythetymanagementtyoftypublictycompaniestytotyassesstyandtyformallytyreport
tyontythetyeffectivenesstyoftytheirtyorganization‟styinternaltycontrols.



ANS:t y F PTS:t y t y 1


14. Applicationtycontrolstyapplytytotyatywidetyrangetyoftyexposurestythattythreatentythetyintegritytyoftyalltyp
rogramstyprocessedtywithintythetycomputertyenvironment.

ANS:t y F PTS:t y t y 1

15. Advisorytyservicestyistyantyemergingtyfieldtythattygoestybeyondtythetyauditor‟stytraditionaltyattestationtyfunction.

ANS:t y T PTS:t y t y 1

16. AntyITtyauditortyexpressestyantyopiniontyontythetyfairnesstyoftythetyfinancialtystatements.

ANS:t y F PTS:t y t y 1

17. Externaltyauditingtyistyantyindependenttyappraisaltyfunctiontyestablishedtywithintyantyorganizationtytotyexami
netyandtyevaluatetyitstyactivitiestyastyatyservicetytotythetyorganization.

ANS:t y F PTS:t y t y 1

18. Externaltyauditorstycantycooperatetywithtyandtyusetyevidencetygatheredtybytyinternaltyaudittydepartmentsty
thattyaretyorganizationallytyindependenttyandtythattyreporttytotythetyAudittyCommitteetyoftythetyBoardtyoft
©ty2016tyCengagetyLearning®.t y Maytynottybetyscanned,tycopiedtyortyduplicatedtyortypostedtytotyatypubliclytyaccessibletywebsite,tyintywholetyortyintypart,tye
xcepttyfortyusetyastypermittedtyintyat y licensetydistributedtywithtyatycertaintyproducttyortyservicetyortyotherwisetyontyatypassword-
protectedtywebsitetyortyschool-approvedtylearningtymanagementtysystemtyfortyclassroomtyuse.

, ITtyAuditingty4thtyEd—
yDirectors. Test Bank, Chapter 1




©ty2016tyCengagetyLearning®.t y Maytynottybetyscanned,tycopiedtyortyduplicatedtyortypostedtytotyatypubliclytyaccessibletywebsite,tyintywholetyortyintypart,tye
xcepttyfortyusetyastypermittedtyintyat y licensetydistributedtywithtyatycertaintyproducttyortyservicetyortyotherwisetyontyatypassword-
protectedtywebsitetyortyschool-approvedtylearningtymanagementtysystemtyfortyclassroomtyuse.