Page 86 - CA Inter MCQ Book

CA RAVI TAORI CA INTER AUDIT MCQs

CHAPTER 12 INTEGRATED CASE STUDY MCQ

CASE STUDY MCQs :- Issued by ICAI

1 (M20R)
M/s NSG & Associates have been appointed as auditors of Viaan Ltd. for the financial year 2019-20. The
processes, operations, accounting and decisions are carried out by using computers in Viaan Ltd. The
auditors understand that there are several aspects that they should consider to determine the level of
automation and complexity in the business environment of Viaan Ltd. While planning the audit work,
the engagement partners discussed with the audit staff about the various types of controls in the
automated environment.

The different types of audit tests that can be used in audit of an automated business environment were
also discussed within the engagement team. The responsibility regarding the Internal Financial Controls
was also discussed in detail. Further the tools and techniques that can be used to deal with the
enormous data and information of Viaan Ltd. were briefed to the audit staff by the engagement
partners.
I. Based on the above facts, answer the following: -
………. are the manual controls that make use of some form of data or information or report
produced from the IT systems and applications.

(a) Application Controls
(b) IT dependent Controls
(c) Automated Controls
(d) General IT Controls
II. Statement 1: Application controls include both manual and automated controls that operate at a
business process level.
Statement 2: General IT Controls apply to mainframe, miniframe as well as end user environment.

(a) Only Statement 1 is correct
(b) Only Statement 2 is correct
(c) Both Statements 1 & 2 are correct
(d) Both Statements 1 & 2 are incorrect
III. …………… are also known as pervasive or indirect controls :-

(a) General IT Controls
(b) Application Controls
(c) IT dependent Controls
(d) None of the above
IV. Which of the following are not the types of audit tests that can be used in the audit in an
automated environment? #Unique
(a) Observation
(b) Inspection
(c) Re performance
(d) None of the above
V. …………… is the combination of processes, tools and techniques that are used to tap vast amounts
of electronic data to obtain meaningful information: -
(a) Computer Assisted Audit Techniques
(b) Automated Controls
(c) Data Analytics
(d) None of the above

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