GLIMPSE OF A CPA'S MIND

1.     A primary advantage of using generalized audit software packages to audit the financial statements of a client that uses an computer system is that the auditor may a)      Consider increasing the use of substantive tests of transactions in place of analytical procedures. b)      Substantiate the accuracy of data through self-checking digits and hash totals. c)       Reduce the level of required tests of control\s to a relatively small amount. d)      Access information stored on computer files while having a limited understanding of the client’s hardware and software features. Answer A is incorrect because the use of generalized audit software may lead to either an increase or a decrease in the use of either substantive tests of transactions or analytical procedures. Answer B is incorrect because self-checking digits and hash totals are controls within the client's computer system to substantiate the accuracy of the data. Answer C is incorrect because the use of genera

1.     The program flow charting symbol representing a decision is a a)      Triangle b)      Circle c)       Rectangle d)      Diamond Answer A is incorrect because a triangle represents off-line storage. Answer B is incorrect because a circle represents an on-page connector. Answer C is incorrect because a rectangle represents a computer operation. Answer D is correct because a diamond represents a decision as to which alternative path to follow. 2.     Which of the following would lessen internal control in a computer processing system? a)      The computer librarian maintains custody of computer program instruction and detailed listings. b)      Computer operators have access to operator instructions and detailed program listing. c)       The control group is solely responsible for the distribution of all computer output. d)      Computer programmers write and debug programs which perform routines designed by the systems analyst. Answer A is incorrect because the computer