1) Tools used in the analysis, design, and documentation of system and subsystem relationships are known as system techniques.
2) The interim audit requires some type of substantive testing.
3) Substantive testing involves direct verification of financial statement figures.
4) When evaluating internal controls, auditors are usually not concerned with the flow of processing and distribution of documents within an application system.
5) Auditors undertake compliance testing to determine the degree of reliance of existing internal controls.
6) It is desirable for auditors to have a basic understanding of systems techniques.
7) The usual focus of an audit is to review an existing system rather than design a new system.
8) Analytic and system flowcharts are seldom found in the working papers of auditors.
9) A systems development project generally consists of three main phases.
10) Systems techniques assist the analyst in the collection and organization of facts.
11) Systems analysis involves formulating a blueprint for a completed system.
12) Auditors primarily use IPO and HIPO charts.
13) Section 404 of the Sarbanes-Oxley Act requires that annual filings of publicly traded companies include a statement of management’s responsibility for establishing and maintaining adequate internal control as well as an assessment of the effectiveness of that internal control.
14) Section 404 of the Sarbanes-Oxley Act requires that monthly filings of publicly traded companies include a statement of management’s responsibility for establishing and maintaining adequate internal control as well as an assessment of the effectiveness of that internal control.
15) Manual input/output and connector symbols are among the basic flowchart symbols.
