CA Foundation Business Economics Questions 2023 - Part 32
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CISA—Certified Information Systems Auditor - Part 138
1. IS auditors are MOST likely to perform compliance tests of internal controls if, after their initial evaluation of the controls, they conclude that control risks are within the acceptable limits. True or false?
A) True
B) False
C)
D)
2. As compared to understanding an organization's IT process from evidence directly collected, how valuable are prior audit reports as evidence?
A) The same value.
B) Greater value.
C) Lesser value.
D) Prior audit reports are not relevant.
3. The PRIMARY purpose of audit trails is to:
A) improve response time for users.
B) establish accountability and responsibility for processed transactions.
C) improve the operational efficiency of the system.
D) provide useful information to auditors who may wish to track transactions
4. How does the process of systems auditing benefit from using a risk-based approach to audit planning?
A) Controls testing starts earlier.
B) Auditing resources are allocated to the areas of highest concern.
C) Auditing risk is reduced.
D) Controls testing is more thorough.
5. After an IS auditor has identified threats and potential impacts, the auditor should:
A) Identify and evaluate the existing controls
B) Conduct a business impact analysis (BIA)
C) Report on existing controls
D) Propose new controls
A) True
B) False
C)
D)
2. As compared to understanding an organization's IT process from evidence directly collected, how valuable are prior audit reports as evidence?
A) The same value.
B) Greater value.
C) Lesser value.
D) Prior audit reports are not relevant.
3. The PRIMARY purpose of audit trails is to:
A) improve response time for users.
B) establish accountability and responsibility for processed transactions.
C) improve the operational efficiency of the system.
D) provide useful information to auditors who may wish to track transactions
4. How does the process of systems auditing benefit from using a risk-based approach to audit planning?
A) Controls testing starts earlier.
B) Auditing resources are allocated to the areas of highest concern.
C) Auditing risk is reduced.
D) Controls testing is more thorough.
5. After an IS auditor has identified threats and potential impacts, the auditor should:
A) Identify and evaluate the existing controls
B) Conduct a business impact analysis (BIA)
C) Report on existing controls
D) Propose new controls
1. Right Answer: A
Explanation: IS auditors are most likely to perform compliance tests of internal controls if, after their initial evaluation of the controls, they conclude that control risks are within the acceptable limits. Think of it this way: If any reliance is placed on internal controls, that reliance must be validated through compliance testing. High control risk results in little reliance on internal controls, which results in additional substantive testing.
2. Right Answer: C
Explanation: Prior audit reports are considered of lesser value to an IS auditor attempting to gain an understanding of an organization's IT process than evidence directly collected.
3. Right Answer: B
Explanation: Enabling audit trails helps in establishing the accountability and responsibility of processed transactions by tracing transactions through the system. The objective of enabling software to provide audit trails is not to improve system efficiency, since it often involves additional processing which may in fact reduce response time for users. Enabling audit trails involves storage and thus occupies disk space.
4. Right Answer: B
Explanation: Allocation of auditing resources to the areas of highest concern is a benefit of a risk-based approach to audit planning.
5. Right Answer: A
Explanation: After an IS auditor has identified threats and potential impacts, the auditor should then identify and evaluate the existing controls.
Explanation: IS auditors are most likely to perform compliance tests of internal controls if, after their initial evaluation of the controls, they conclude that control risks are within the acceptable limits. Think of it this way: If any reliance is placed on internal controls, that reliance must be validated through compliance testing. High control risk results in little reliance on internal controls, which results in additional substantive testing.
2. Right Answer: C
Explanation: Prior audit reports are considered of lesser value to an IS auditor attempting to gain an understanding of an organization's IT process than evidence directly collected.
3. Right Answer: B
Explanation: Enabling audit trails helps in establishing the accountability and responsibility of processed transactions by tracing transactions through the system. The objective of enabling software to provide audit trails is not to improve system efficiency, since it often involves additional processing which may in fact reduce response time for users. Enabling audit trails involves storage and thus occupies disk space.
4. Right Answer: B
Explanation: Allocation of auditing resources to the areas of highest concern is a benefit of a risk-based approach to audit planning.
5. Right Answer: A
Explanation: After an IS auditor has identified threats and potential impacts, the auditor should then identify and evaluate the existing controls.
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