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The use of statistical sampling procedures helps minimize:
A. sampling risk.
B. detection risk.
C. inherent risk.
D. control risk.
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Answer: B
Detection risk is the risk that the IS auditor uses an
inadequate test procedure and concludes that material errors
do not exist, when in fact they do. Using statistical
sampling, an IS auditor can quantify how closely the sample
should represent the population and quantify the probability
of error. Sampling risk is the risk that incorrect
assumptions will be made about the characteristics of a
population from which a sample is selected. Assuming there
are no related compensating controls, inherent risk is the
risk that an error exists, which could be material or
significant when combined with other errors found during the
audit. Statistical sampling will not minimize this. Control
risk is the risk that a material error exists, which will
not be prevented or detected on a timely basis by the system
of internal controls. This cannot be minimized using
statistical sampling.
| Is This Answer Correct ? | 13 Yes | 2 No |
The responsibility for designing, implementing and maintaining a system of internal control lies with: A. the IS auditor. B. management. C. the external auditor. D. the programming staff.
When selecting software, which of the following business and technical issues is the MOST important to be considered? A. Vendor reputation B. Requirements of the organization C. Cost factors D. Installed base
While reviewing an ongoing project, the IS auditor notes that the development team has spent eight hours of activity on the first day against a budget of 24 hours (over three days). The projected time to complete the remainder of the activity is 20 hours. The IS auditor should report that the project: A. is behind schedule. B. is ahead of schedule. C. is on schedule. D. cannot be evaluated until the activity is completed.
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An IS auditor performing a review of the backup processing facilities should be MOST concerned that: A. adequate fire insurance exists. B. regular hardware maintenance is performed. C. offsite storage of transaction and master files exists. D. backup processing facilities are tested fully.
Without causing a conflict of interest, a duty compatible with those of a security administrator would be: A. quality assurance. B. application programming. C. systems programming. D. data entry.
When performing a general controls review, an IS auditor checks the relative location of the computer room inside the building. What potential threat is the IS auditor trying to identify? A. Social engineering B. Windstorm C. Earthquake D. Flooding
An organization having a number of offices across a wide geographical area has developed a disaster recovery plan (DRP). Using actual resources, which of the following is the MOST cost-effective test of the DRP? A. Full operational test B. Preparedness test C. Paper test D. Regression test
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