Chapter 2 Systems Techniques and Documentation

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.