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

Test Bank 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 management (including the CEO) must certify monthly and annually their organization’s internal controls over financial reporting.

ANS: F PTS: 1

2. Both the SEC and the PCAOB require management to use the COBIT framework for assessing internal control adequacy.

ANS: F PTS: 1

3. Both the SEC and the PCAOB require management to use the COSO framework for assessing internal control adequacy.

ANS: F PTS: 1

4. A qualified opinion on management’s assessment of internal controls over the financial reporting system necessitates a qualified opinion on the financial statements?

ANS: F PTS: 1

5. The same internal control objectives apply to manual and computer-based information systems.

ANS: T PTS: 1

6. The external auditor is responsible for establishing and maintaining the internal control system.

ANS: F PTS: 1

7. Segregation of duties is an example of an internal control procedure.

ANS: T PTS: 1

8. Preventive controls are passive techniques designed to reduce fraud.

ANS: T PTS: 1

9. A key modifying assumption in internal control is that the internal control system is the responsibility of management.

ANS: T PTS: 1

10. While the Sarbanes-Oxley Act prohibits auditors from providing non-accounting services to their audit clients, they are not prohibited from performing such services for non-audit clients or privately held companies.

ANS: T PTS: 1

11. The Sarbanes-Oxley Act requires the audit committee to hire and oversee the external auditors.

ANS: T PTS: 1

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

ANS: F PTS: 1

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