IT AudITing CISA Trivia Questions! Quiz

In planning an audit, the identification of areas of high risk is the most critical step. This is because it allows the auditor to focus their efforts and resources on the areas that are most likely to contain material misstatements or fraud. By identifying these high-risk areas, the auditor can then develop appropriate audit procedures and allocate sufficient time and resources to address the identified risks effectively. This step is crucial in ensuring that the audit is conducted efficiently and effectively, and that the auditor can provide reasonable assurance on the fairness of the financial statements.

During the planning stage of an IS audit, the primary goal of an IS auditor is to address audit objectives. This means that the auditor needs to identify and understand the specific goals and objectives of the audit in order to plan the audit activities accordingly. By addressing audit objectives, the auditor can ensure that the audit is focused and targeted towards achieving the desired outcomes. This helps in determining the scope of the audit, identifying the key areas to be assessed, and planning the necessary audit procedures and tests to be performed.

The first step to ensure that audit resources deliver the best value to the organization is to develop the audit plan based on a detailed risk assessment. This step is crucial because it helps identify the areas of highest risk and prioritize them for audit. By conducting a risk assessment, the organization can allocate its resources effectively and focus on the areas that are most critical. This ensures that the audits are targeted and provide valuable insights to the organization. Scheduling audits, training staff, and monitoring progress are important steps, but they should come after the audit plan is developed based on risk assessment.

The extent to which data will be collected during an IS audit should be determined based on the purpose and scope of the audit. This means that the data collection should align with the specific objectives and boundaries set for the audit. The purpose and scope define what areas or processes will be examined and what goals the audit aims to achieve. Therefore, the data collection should be tailored to gather relevant information that supports the audit's purpose and scope.

Statistical sampling is used when the probability of error needs to be objectively quantified. This method allows the auditor to select a sample size based on statistical calculations, ensuring a representative sample that can provide a reliable estimate of the population. On the other hand, judgment sampling relies on the auditor's subjective judgment, which may introduce bias and increase the risk of sampling errors. Therefore, in situations where objectivity and quantification of error probability are crucial, statistical sampling is the preferred approach.

When planning an audit, it is important to assess the risk in order to provide reasonable assurance that the audit will cover material items. This means that the auditor aims to address the significant and important areas of the financial statements and related transactions, ensuring that the audit work is focused on areas that have a higher risk of material misstatement. By focusing on material items, the auditor can provide reasonable assurance to stakeholders that the financial statements are free from material misstatements and are reliable.

The first step for an IS auditor evaluating logical access controls is to obtain an understanding of the security risks to information processing. This is important because it allows the auditor to identify potential vulnerabilities and threats that could compromise the security of the system. By understanding the security risks, the auditor can then develop an appropriate audit plan and prioritize their evaluation of controls. This step also helps in determining the scope of the audit and focusing on areas that pose the highest risk to information processing.

The IS auditor should review the threats/vulnerabilities affecting the assets first because understanding the potential risks and vulnerabilities is crucial in evaluating the management's risk assessment. By identifying and assessing the threats and vulnerabilities, the auditor can determine the effectiveness of the controls in place and the mechanism for monitoring risks. This review helps the auditor gain insights into the overall risk landscape and enables them to provide valuable recommendations for improving the management's risk assessment of information systems.

An IS auditor should use professional judgment to ensure that sufficient evidence will be collected. This is because the purpose of an audit is to gather evidence and evaluate it in order to form an opinion on the adequacy and effectiveness of controls, as well as to identify any areas of concern. Without sufficient evidence, the auditor will not be able to make informed conclusions or recommendations. Therefore, it is crucial for the auditor to prioritize the collection of appropriate and relevant evidence during the audit process.

To affix a digital signature to a message, the sender must first create a message digest by applying a cryptographic hashing algorithm against the entire message. The message digest acts as a unique identifier for the message. Then, the sender enciphers the message digest using their private key. This process ensures that the message cannot be tampered with and verifies the authenticity of the sender. By encrypting the message digest with the sender's private key, it can be decrypted using the corresponding public key, confirming that the message has not been altered and was indeed sent by the claimed sender.