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1. When auditing around the computer, the independent auditor focuses solely on the source documents and
a. Test data.
b. Computer processing.
c. Compliance techniques.
d. Computer output.
2. In auditing through a computer, the test data method is used by auditors to test the
a. Accuracy of input data.
b. Validity of the output.
c. Procedures contained within the program.
d. Normalcy of distribution of test data.
3. Which of the following methods of testing application controls uses a generalized audit software package prepared by the auditors?
a. Parallel simulation
b. Integrated- test- facility approach
c. Test data approach
d. Exception report tests
4. A primary advantage of using generalized audit software packages in auditing the financial statements of a client that uses a computer system is that the auditor may
a. Substantiate the accuracy of data through self- checking digits and hash totals.
b. Access information stored on computer files without a complete understanding of the client€™s hardware and software features.
c. Reduce the level of required compliance testing to a relatively small amount.
d. Gather and permanently store large quantities of supportive evidential matter in machine- readable form.
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