1. An IS auditor is reviewing access to an application to determine whether the 10 most recent "new user" forms were correctly authorized. This is an example of:
A. variable sampling.
B. substantive testing.
C. compliance testing.
D. stop-or-go sampling.
The correct answer is:C.
Explanation:Compliance testing determines whether controls are being applied in compliance with policy. This includes tests to determine whether new accounts were appropriately authorized. Variable sampling is used to estimate numerical values, such as dollar values. Substantive testing substantiates the integrity of actual processing, such as balances on financial statements. The development of substantive tests is often dependent on the outcome of compliance tests. If compliance tests indicate that there are adequate internal controls, then substantive tests can be minimized. Stop-or-go sampling allows a test to be stopped as early as possible and is not appropriate for checking whether procedures have been followed.
2. The decisions and actions of an IS auditor are MOST likely to affect which of the following risks?
The correct answer is:B. Explanation:Detection risks are directly affected by the auditor’s selection of audit procedures and techniques. Inherent risks usually are not affected by the IS auditor. Control risks are controlled by the actions of the company’s management. Business risks are not affected by the IS auditor.
3. Senior management has requested that an IS auditor assist the departmental management in the implementation of necessary controls. The IS auditor should:
A. refuse the assignment since it is not the role of the IS auditor.
B. inform management of his/her inability to conduct future audits.
C. perform the assignment and future audits with due professional care.
D. obtain the approval of user management to perform the implementation and follow-up.
The correct answer is:B.