Computer Auditing Question Paper
Computer Auditing
Course:Bachelor Of Commerce
Institution: Kca University question papers
Exam Year:2010
UNIVERSITY EXAMINATIONS: 2010/2011
THIRD YEAR EXAMINATION FOR THE DEGREE OF BACHELOR OF
COMMERCE
CMS 303: COMPUTER AUDITING (DAY AND EVENING)
DATE: DECEMBER 2010 TIME: 2 HOURS
INSTRUCTIONS: Answer question ONE and any other TWO questions
QUESTION ONE
Delight LTD. is a medium-sized company that has recently implemented computerised information
and accounting systems.
a) Describe the distinguishing features of computerized information systems which an auditor should
consider when undertaking audit work in a computerized environment. (12 marks)
b) Delight LTD. has on-line terminals located in open office space. The terminals do not have key
locks. List and explain the risk posed by the on-line terminal and recommend controls that should
be put in place to minimise the risks. (10 marks)
c) Summarize the difficulties encountered by auditors when using computer audit programs in their
audit assignments. (8 marks)
(Total: 30 marks)
QUESTION TWO
a) Outline the key challenges to an auditor in user-controlled computer information system
environment (10 Marks)
b) Outline the benefits of involving an auditor during the system design, development and
implementation (10 Marks)
(Total: 20 marks)
2
QUESTION THREE
Explain how an auditor can use the following strategy in auditing computer program
i) Non-processing of data (6 Marks)
ii) Processing the live or actual data (7 marks)
iii) Processing simulated data (7 marks)
(Total: 20 marks)
QUESTION FOUR
The audit of computer-based accounting systems might necessitate the use of computer-assisted audit
techniques (CAATs) in obtaining audit evidence.
Required:
a) Name and explain the two major categories of CAATs. (4 marks)
b) Describe the factors that an auditor should take into consideration before using
CAATs. (8 marks)
c) Identify the advantages of CAATs to an auditor. (8 marks)
(Total: 20 marks)
QUESTION FIVE
a) In planning the audit, an auditor should consider how a computerized information system may
affect the client’s accounting and internal control systems.
(i) Identify the characteristics of a computerized information system which may influence
the auditor’s assessment of audit risk. (6 marks)
(ii) Explain how an auditor uses computer audit programs in the audit of a computerized
information system. (6 marks)
b) List and explain the controls that a company with several remote terminals connected to the
mainframe computer should put in place in order to minimise errors and fraud. (8 marks)
(Total: 20 marks)
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