Name: Date:
Schedule: Score:
I. Instruction: Analyze the problem, determine what is being asked, and shade the
circle beside your final answer. Note: Each of the given situation in each number is
independent from each other unless otherwise stated.
DJ3 Auditing Firm is currently conducting an audit to test the application
controls of BLSG Company. You, an accountancy student, are the son/daughter of the
company president and after gaining approval from the appropriate authorities, you
were allowed to observe the audit.
1. As you observing the auditors, you heard someone behind you grumble, “ This is so
annoying, I can’t continue my work because of audit!” He sighed and said, “I would have
to wait for them to finish.” You glanced back and saw Person T, one of the accountants
using who primarily use the computer application being audited. What conclusion is
most likely based on this situation?
The auditors are using the Black-Box Approach
The auditors are auditing around the computer
The auditors are auditing through the computer
The auditors are auditing the financial statements prepared by Person T
2. After inquiring what the auditors have done so far, you learned that the auditors have
only asked for all the receipts and the printed copies of the documents processed by the
computer application. So far, they have not yet intensively accessed the computer
application. What reason is most probable in this situation?
The auditors are using the White-Box Approach
The auditors are auditing around the computer
The auditors are auditing through the computer
The auditors are using CAATs
3. The auditors are currently testing authority tables, what test of controls is/are most
likely being conducted?
Access Tests only
Access Tests and Authenticity Tests
Access Tests and Redundancy Tests
Access Tests, Authenticity Tests, and Redundancy Tests
4. You saw the auditor create a replica of the program by using a 4GL or Generalized
Auditing Software. What technique is being used?
Test Data Method
Base Case System Evaluation
Integrated Test Facility
Parallel Simulation
5. If the auditor conducts a set of tests of transactions that contains all possible
transaction types, what technique is he/she using?
Base Case
BCSE Test
Completeness Test
Audit Trail Test
II. Instruction: Shade the circle beside the answer that would satisfy what is required.
1. True of False: The Black-Box Approach requires an understanding of the technical
aspect of the application.
True, Because the client’s audit procedures are ignored
True, Because input is reconciled against output
False, It does not require an understanding of the technical aspect of the
application.
False, It requires an understanding of the internal logic of the application
2. Which is/are the assumption/s of the Black-Box Approach?
If output reconciles with the process, then the application must have used the
inputs accurately.
If the input reconciles with the transactions, then the application must have
produced the outputs accurately.
If the application processed the inputs properly, then the outputs must be
accurate.
If the inputs reconciles with the outputs, then the application must have
processed the transactions accurately.
3. Which statement is does not belong to the group.
The Test Data Method is used to establish application functionality by processing
specially prepared sets of ouyput data through production applications that are
under review.
Integrated Test Facility is an automated technique that enables the auditor to
test an application’s logic and controls during its normal operations.
Parallel Simulation requires the auditor to write a program that simulates key
features or processes of the application under review.
Black-Box approach is used when visible inputs and detailed outputs are
available
4. True or False: Test Data Method, Integrated Test Facility, and Parallel Simulation are
the only CAATs.
True
False
5. True or False: CAATs use several test of controls.
True, CAATs use several test of controls such as Integrated Test Facility, Test
Data Method, and Parallel Simulation
True, CAATs use several test of controls such as Authenticity and Rounding Error
tests
False, Each CAAT use only a sing test of control
False, Test of Controls use several CAATs.
