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

Study Resource for Information Technology Auditing 4th Edition by James A. Hall

ISBN-10:1133949886 , ISBN-13:978-1133949886

Chapter 1—Auditing and Internal Control
TRUE/FALSE

1. Corporate leadership (including the CEO) is required to affirm monthly and yearly the effectiveness of their organization’s internal controls over financial reporting.

ANS: F PTS: 1

2. Both the SEC and the PCAOB mandate management to utilize the COBIT framework for evaluating the adequacy of internal controls.

ANS: F PTS: 1

3. Both the SEC and the PCAOB mandate management to utilize the COSO framework for evaluating the adequacy of internal controls.

ANS: F PTS: 1

4. An endorsed opinion on management’s evaluation of internal controls over the financial reporting system necessitates an endorsed opinion on the financial statements?

ANS: F PTS: 1

5. The identical internal control objectives are applicable to manual and computer-based information systems.

ANS: T PTS: 1

6. The external auditor bears responsibility for establishing and upholding the internal control system.

ANS: F PTS: 1

7. Division of responsibilities is a specimen of an internal control measure.

ANS: T PTS: 1

8. Preventative controls are passive strategies designed to diminish fraud.

ANS: T PTS: 1

9. An essential modifying presumption in internal control is that the internal control system is within the purview of management.

ANS: T PTS: 1

10. Despite the prohibition in the Sarbanes-Oxley Act against auditors offering non-accounting services to their audit clients, they are not forbidden from carrying out such services for non-audit clients or privately owned companies.

ANS: T PTS: 1

11. The Sarbanes-Oxley Act mandates the audit committee to engage and supervise the external auditors.

ANS: T PTS: 1

12. Section 404 demands that corporate management (including the CEO) assert the effectiveness of their organization’s internal controls on a quarterly and annual basis.

ANS: F PTS: 1

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