ITA Audit Planning & Methodology 2

Question 1

Which audit methodology step involves evaluating whether internal controls are designed properly to mitigate identified risks?

Accepted Answer

Design effectiveness assessment

Answer

Substantive testing

Answer

Audit reporting

Answer

Follow-up procedures

Question 2

What distinguishes 'operating effectiveness testing' from 'design effectiveness assessment' in an IT audit?

Accepted Answer

Design assessment determines if a control is properly structured; operating effectiveness testing determines if it actually functions as designed

Answer

Operating effectiveness testing evaluates whether a control is properly designed; design assessment tests if it works

Answer

Operating effectiveness testing is only performed on financial controls

Answer

There is no meaningful distinction between the two

Question 3

In an IT audit, 'sampling' is used primarily to:

Accepted Answer

Test a representative subset of a population to draw conclusions about the whole

Answer

Select all transactions in a population for testing

Answer

Choose which auditees to interview

Answer

Determine the audit fee

Question 4

Which type of audit evidence is generally considered most reliable?

Accepted Answer

Evidence obtained directly by the auditor through observation or independent confirmation

Answer

Verbal representations provided by management

Answer

Documents produced by the auditee and provided to the auditor

Answer

Photocopies of original documents

Question 5

What is the purpose of a 'walkthrough' procedure in an IT audit?

Accepted Answer

To trace a transaction from initiation through completion to confirm understanding of the process and controls

Answer

To physically inspect the data center facility

Answer

To review audit work papers from prior periods

Answer

To walk auditors through the organization's financial statements

Question 6

When developing the audit schedule, which factor should be given the highest priority?

Accepted Answer

Risk level and criticality of systems and processes to be audited

Answer

Auditor preferences for working hours

Answer

Alphabetical order of system names

Answer

The availability of external auditors

Question 7

Which of the following best describes 'audit evidence sufficiency'?

Accepted Answer

Evidence is sufficient when there is enough of it to support the auditor's conclusions

Answer

Evidence is sufficient when it is stored in an auditor-controlled environment

Answer

Evidence is sufficient only when obtained from external third parties

Answer

Sufficiency refers to whether evidence was collected before the audit deadline