Auditing in a Cis

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CEBU CPAR CENTER
Mandaue City, Cebu

AUDITING THEORY AUDITING IN A COMPUTER INFORMATION SYSTEMS (CIS) ENVIRONMENT
Related PSAs/PAPSs: PSA 401; PAPS 1001, 1002, 1003, 1008 and 1009 PSA 401 – Auditing in a Computer Information Systems (CIS) Environment 1. Which statement is incorrect when auditing in a CIS environment? a. A CIS environment exists when a computer of any type or size is involved in the processing by the entity of financial information of significance to the audit, whether that computer is operated by the entity or by a third party. b. The auditor should consider how a CIS environment affects the audit. c. The use of a computer changes the processing, storage and communication of financial information and may affect the accounting and internal control systems employed by the entity. d. A CIS environment changes the overall objective and scope of an audit. 2. Which of the following standards or group of standards is mostly affected by a computerized information system environment? a. General standards c. Reporting standards b. Second standard of field work d. Standards of fieldwork 3. Which of the following is least considered if the auditor has to determine whether specialized CIS skills are needed in an audit? a. The auditor needs to obtain a sufficient understanding of the accounting and internal control system affected by the CIS environment. b. The auditor needs to determine the effect of the CIS environment on the assessment of overall risk and of risk at the account balance and class of transactions level. c. Design and perform appropriate tests of controls and substantive procedures. d. The need of the auditor to make analytical procedures during the completion stage of audit.

4. It relates to materiality of the financial statement assertions affected by the computer processing. a. Threshold b. Relevance c. Complexity d. Significance 5. Which of the following least likely indicates a complexity of computer processing? a.

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