Accounting Information Systems: The Processes and Controls, 2nd Edition

END OF CHAPTER MATERIAL

CONCEPT CHECK

1. 1. Which of the following types of audits is most likely to be conducted for the purpose of identifying areas for cost savings?
   1. Financial statement audits
   2. Operational audits
   3. Regulatory audits
   4. Compliance audits
2. 2. Financial statement audits are required to be performed by
   1. government auditors
   2. CPAs
   3. internal auditors
   4. IT auditors
3. 3. Which of the following is not considered a cause of information risk?
   1. Management's geographic location is far from the source of the information needed to make effective decisions.
   2. The information is collected and prepared by persons who use the information for very different purposes.
   3. The information relates to business activities that are not well understood by those who collect and summarize the information for decision makers.
   4. The information has been tested by internal auditors and a CPA firm.
4. 4. Which of the following is not a part of generally accepted auditing standards?
   1. General standards
   2. Standards of fieldwork
   3. Standards of information systems
   4. Standards of reporting
5. 5. Which of the following best describes what is meant by the term “generally accepted auditing standards”?
   1. Procedures used to gather evidence to support the accuracy of a client's financial statements
   2. Measures of the quality of an auditor's conduct in carrying out professional responsibilities
   3. Professional pronouncements issued by the ...