EDP Audit MCQs | 1

1. Which of the following statement is not distinguishing feature for computer based processing and manual
processing?
1. Errors in a CIS environment are less systemic as compared to errors in manual processing
2. The potential for human error in the CIS environment is greater as compared to manual system
3. In a computer based accounting system, audit trail is in electronic form
4. Computer processing offers management a variety of analytical

2. To avoid invalid data input, a bank added an extra number at the end of each account number and subjected
the new number to an algorithm. This techniques is known as
1. Dual read
2. Test for reasonableness
3. Check digit
4. Occurrence correction

3. When computer programme or files can be accessed from terminals, access can be limited to authorized
individuals by
1. appointing a librarian
2. controlling passwords
3. appointing EDP auditor
4. Both (1) and (2)

4. Erroneous data has been detected by computer program controls. It has been excluded from processing and
printed separately “Error Report”. Who should most probability by review and follow up on this report?
1. system, analyst
2. Data control group
3. Programmer
4. Computer operator

5. General controls will be ineffective when EDP department

1. Participates in computer software acquisition decisions
2. Design Documentation for computerized
3. Originate changes in master
4. Provide physical security for programme files.

6. Which of the following activities would most likely be performed by EDP department?
1. Authorising transactions
2. Parity checks
3. Distributing output

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 EDP Audit MCQs | 2

4. Correction of transactional errors

7. The completeness of “wages” figure can be tested by comparing the number of time cards to be processed
with transaction on wages sheet. This type of control technique is called
1. check total
2. control total
3. occurrence correction
4. check digit

8. Which of following will not affect audit in a CIS environment?

1. The objective of expression of opinion on financial statements
2. Compliance procedures adopted by the auditor
3. Performance of substantive procedures
4. Evaluation of inherent risk and control risk

9. Which of the following statements is not true of the test data approach in a test of computerised accounting
system?
1. Test data tests only those controls which the auditor wishes to rely
2. Test data should consist of data related to all controls prevalent in the organization
3. The result of test data indicates that all the application and general controls are functioning properly
4. Test data processed by the client’s computer programme under the auditor’s control

10. Which of the following CAATs allow fictitious transactions planted by the auditor to be processed along with
real ones on client’s system?
1. Integrated test facility
2. Test data approach
3. Generalised audit software
4. Parallel simulation

11. An auditor is least likely to use computer software to

1. access client data files
2. assess control risk
3. performing analytical producers
4. None of the above

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 EDP Audit MCQs | 3

ANSWER EDP AUDIT

1. 1 2. 3 3. 4 4. 1 5. 3
6. 3 7. 4 8. 1 9. 2 10. 1
11. 4

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