MCQ on the IT Audit Manual (Volume-III) Audit Programmed for Specific Applications (Page 70 to 93):
Question 1
What is the primary objective of auditing a payroll system?
A) To ensure compliance with tax laws
B) To verify the accuracy of employee data
C) To evaluate the effectiveness of internal controls
D) To assess the system's reliability and integrity
Answer: D) To assess the system's reliability and integrity
Question 2
Which of the following is a key audit step in reviewing a payroll system?
A) Verifying employee data against HR records
B) Testing payroll calculations for accuracy
C) Evaluating the system's access controls
D) All of the above
Answer: D) All of the above
Question 3
What is the purpose of auditing a general ledger system?
A) To ensure compliance with accounting standards
B) To verify the accuracy of financial data
C) To evaluate the effectiveness of internal controls
D) To assess the system's reliability and integrity
Answer: D) To assess the system's reliability and integrity
Question 4
Which of the following is a key audit step in reviewing a general ledger system?
A) Verifying account balances against financial statements
B) Testing journal entries for accuracy
C) Evaluating the system's reconciliation processes
D) All of the above
Answer: D) All of the above
Question 5
What is the primary objective of auditing a treasury management system?
A) To ensure compliance with regulatory requirements
B) To verify the accuracy of financial data
C) To evaluate the effectiveness of internal controls
D) To assess the system's reliability and integrity
Answer: D) To assess the system's reliability and integrity
Question 6
Which of the following is a key audit step in reviewing a treasury management system?
A) Verifying cash balances against bank statements
B) Testing investment transactions for accuracy
C) Evaluating the system's cash forecasting processes
D) All of the above
Answer: D) All of the above
Question 7
What is the purpose of auditing a procurement system?
A) To ensure compliance with purchasing policies
B) To verify the accuracy of vendor data
C) To evaluate the effectiveness of internal controls
D) To assess the system's reliability and integrity
Answer: D) To assess the system's reliability and integrity
Question 8
Which of the following is a key audit step in reviewing a procurement system?
A) Verifying purchase orders against vendor contracts
B) Testing invoice payments for accuracy
C) Evaluating the system's requisition processes
D) All of the above
Answer: D) All of the above
Question 9
What is the primary objective of auditing a sales and distribution system?
A) To ensure compliance with sales tax laws
B) To verify the accuracy of customer data
C) To evaluate the effectiveness of internal controls
D) To assess the system's reliability and integrity
Answer: D) To assess the system's reliability and integrity
Question 10
Which of the following is a key audit step in reviewing a sales and distribution system?
A) Verifying sales orders against customer contracts
B) Testing shipment transactions for accuracy
C) Evaluating the system's inventory management processes
D) All of the above
Answer: D) All of the above
Question 11
What is the purpose of auditing a fixed asset management system?
A) To ensure compliance with accounting standards
B) To verify the accuracy of asset data
C) To evaluate the effectiveness of internal controls
D) To assess the system's reliability and integrity
Answer: D) To assess the system's reliability and integrity
Question 12
Which of the following is a key audit step in reviewing a fixed asset management system?
A) Verifying asset additions against purchase invoices
B) Testing asset depreciation calculations for accuracy
C) Evaluating the system's asset disposal processes
D) All of the above
Answer: D) All of the above
Question 13
What is the primary objective of auditing a human resource management system?
A) To ensure compliance with labor laws
B) To verify the accuracy of employee data
C) To evaluate the effectiveness of internal controls
D) To assess the system's reliability and integrity
Answer: D) To assess the system's reliability and integrity
Question 14
Which of the following is a key audit step in reviewing a human resource management system?
A) Verifying employee data against HR records
B) Testing payroll calculations for accuracy
C) Evaluating the system's recruitment processes
D) All of the above
Answer: D) All of the above
Question 15
What is the purpose of auditing a customer relationship management system?
A) To ensure compliance with customer data protection laws
B) To verify the accuracy of customer data
C)
Question 16
What is the primary objective of auditing a supply chain management system?
A) To ensure compliance with logistics regulations
B) To verify the accuracy of inventory data
C) To evaluate the effectiveness of internal controls
D) To assess the system's reliability and integrity
Answer: D) To assess the system's reliability and integrity
Question 17
Which of the following is a key audit step in reviewing a supply chain management system?
A) Verifying inventory levels against physical counts
B) Testing shipment transactions for accuracy
C) Evaluating the system's procurement processes
D) All of the above
Answer: D) All of the above
Question 18
What is the purpose of auditing a business intelligence system?
A) To ensure compliance with data analytics regulations
B) To verify the accuracy of business data
C) To evaluate the effectiveness of internal controls
D) To assess the system's reliability and integrity
Answer: D) To assess the system's reliability and integrity
Question 19
Which of the following is a key audit step in reviewing a business intelligence system?
A) Verifying data sources against business requirements
B) Testing data analytics for accuracy
C) Evaluating the system's data governance processes
D) All of the above
Answer: D) All of the above
Question 20
What is the primary objective of auditing a data warehouse system?
A) To ensure compliance with data storage regulations
B) To verify the accuracy of data warehouse data
C) To evaluate the effectiveness of internal controls
D) To assess the system's reliability and integrity
Answer: D) To assess the system's reliability and integrity
Question 21
Which of the following is a key audit step in reviewing a data warehouse system?
A) Verifying data sources against business requirements
B) Testing data transformation processes for accuracy
C) Evaluating the system's data quality processes
D) All of the above
Answer: D) All of the above
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