Electronic Data Processing (EDP) MCQs

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
Integrated test facility
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
Check digit
3. When computer programmer 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)
Both (a) and (b)
4. Inaccurate data has been detected by computer program controls. It has been excluded from processing and printed separately “Error Report”. Who should most likelihood by review and follow up on this report?
(a) System, analyst
(b) Data control group
(c) Programmer
(d) Computer operator
System, analyst
5. An auditor is least likely to use computer software to:
(a) Access client data files
(b) Assess control risk
(c) Performing analytical producers
(d) None of the above
None of the above
6. Which of the following activities would most likely be performed by EDP department?
(a) Authorizing transactions
(b) Parity checks
(c) Distributing output
(d) Correction of transactional errors
Distributing output
7. Which of the following statement is not distinguishing feature for computer based processing and manual processing?
(a) Errors in a CIS are less systemic as 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.
Errors in a CIS environment are less systemic as in manual processing\
8. Which of following will hot-affect- 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
The objective of expression of opinion on financial statements
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 wishes to rely only those the auditor
(b) Test data consist 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
Test data consist of data related to all controls prevalent
10. The fullness of “wages” figure can be verified by likening the number of time cards to be treated with transaction on wages sheet. This is
(a) Check total
(b) Control total
(c) Occurrence-correction
(d) Check digit
Check digit
11. General controls will be fruitless when EDP sector:
(a) Participates in computer software acquisition decisions
(b) Design Documentation’ computerized operations
(c) Originate, changes in master files
(d) Provide physical security for programmer files
Originate, changes in master files

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Electronic Data Processing (EDP) MCQs
By: Prof. Dr. Fazal Rehman | Last updated: July 28, 2024

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