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Question 1

Which framework is most commonly referenced by CPAs when evaluating IT general controls and IT application controls in a US audit?

Accepted Answer

COBIT

Answer

COBIT (Control Objectives for Information and Related Technologies) is the primary IT governance framework referenced by CPAs evaluating IT controls in audits.

Question 2

Under AICPA standards, what is the primary purpose of reviewing IT general controls (ITGCs) during a financial statement audit?

Accepted Answer

To assess whether automated application controls can be relied upon

Answer

ITGCs provide the foundation for relying on automated application controls; if ITGCs are weak, application controls may not function as intended.

Question 3

Which type of IT control automatically prevents an invalid transaction from being processed in an accounting system?

Accepted Answer

Preventive application control

Answer

A preventive application control is embedded in the software and stops an invalid transaction before it is recorded.

Question 4

An auditor discovers that a company allows programmers to have direct access to the production environment. This is an example of a weakness in which ITGC domain?

Accepted Answer

Logical access

Answer

Allowing programmers access to the production environment is a segregation-of-duties failure within the logical access ITGC domain.

Question 5

Under the AICPA's guidance, a Service Organization Control (SOC) 1 report is primarily used to address controls at a service organization that are relevant to:

Accepted Answer

User entities' internal control over financial reporting

Answer

A SOC 1 report focuses on controls at a service organization that are likely to be relevant to a user entity's internal control over financial reporting.

(AICPA) American Institute of Certified Public Accountants Practice Test

(AICPA) American Institute of Certified Public Accountants Practice Test

AICPA AICPA Information Technology