Electronic Data Processing (EDP) MCQs

By: Prof. Dr. Fazal Rehman | Last updated: May 21, 2025

1. : Which of the following CAATs allow untrue contacts planted by the auditor to be processed along with real ones on client’s system?
(A) Integrated test facility
(B) Test data approach
(C) Generalized audit software
(D) Parallel simulation

2. : To avoid invalid data input, a bank added an extra number at the end of each account number and subjected the new number to an algorithm. This is known as:
(A) Dual read
(B) Test for reasonableness
(C) Check digit
(D) Occurrence correction

3. : When computer programmers or files can be accessed from terminals, access can be limited to official persons by:
(A) Appointing a librarian
(B) Controlling passwords
(C) Appointing EDP auditor
(D) Both (a) and (b)

4. : Inaccurate data has been detected by computer program controls. It has been excluded from processing and printed separately as an “Error Report.” Who should most likely review and follow up on this report?
(A) System analyst
(B) Data control group
(C) Programmer
(D) Computer operator

5. : An auditor is least likely to use computer software to:
(A) Access client data files
(B) Assess control risk
(C) Perform analytical procedures
(D) None of the above

6. : Which of the following activities would most likely be performed by the EDP department?
(A) Authorizing transactions
(B) Parity checks
(C) Distributing output
(D) Correction of transactional errors

7. : Which of the following statement is not a distinguishing feature for computer-based processing and manual processing?
(A) Errors in a CIS are less systemic than in manual processing
(B) Human error in the CIS environment is greater
(C) In a computer, audit trail is in electronic form
(D) Computer processing offers management analytical tools

8. : Which of the following will not affect the audit in a CIS atmosphere?
(A) The objective of expression of opinion on financial statements
(B) Compliance procedures adopted by the auditor
(C) Performance of substantive procedures
(D) Evaluation of inherent risk and control risk

9. : Which of the following is not true of the test data approach in a test of computerized accounting system?
(A) Test data tests controls which the auditor wishes to rely on
(B) Test data consists of data correlated to all controls prevalent
(C) Test data checks that all the application and general controls are correctly working
(D) Test data managed by the client’s computer programmer under the auditor’s control

10. : The fullness of the “wages” figure can be verified by linking the number of time cards to be treated with the transaction on the wages sheet. This is:
(A) Check total
(B) Control total
(C) Occurrence correction
(D) Check digit

11. : General controls will be fruitless when the EDP sector:
(A) Participates in computer software acquisition decisions
(B) Designs documentation for computerized operations
(C) Originates changes in master files
(D) Provides physical security for programmer files