Assurance Objectives of XBRL, IT Initiatives Benefits and Costs, and Database Management Techniques

Part One (60 Marks)

Question 1 (20 marks)

It is expected that investors and other financial statement users will ultimately demand some assurance from an auditor or external party on a firm’s use of XBRL

Discuss that statement showing the XBRL possible assurance objectives 

Question 2 (20 marks)

IT projects require large amounts of capital and selecting one project often means foregoing others. Furthermore, IT projects often involve changes in business processes that will affect substantial portions of the organization

1.Explain potential benefits of IT initiatives and how to evaluate them

2.Assess potential costs of IT initiatives and how to  evaluate them

Question 3 : Choose the correct answer for the following items.  (20 marks) 

1.Which of the following correctly describes the Referential Integrity Rule?

A.The primary key of a table must have data values (cannot be null).

B.Each attribute in a table must have a unique name.

C.The data value for a foreign key could be null.

D.Values of a specific attribute must be of the same type.

2.Which of the following tasks cannot be performed through queries in access?

A.Retrieve and display data.

B.Calculations of data.

C.Data sorting.

D.Create and update relationships.

3.In Microsoft Access, we use tables in a database for:

A.Data entry.

B.Data storage.

C.Data retrieval.

D.Two of these choices are correct.

4.A company would like to implement a management information system that integrates all functional areas within an organization to allow information exchange and collaboration among all parties involved in business operations. Which of the following systems is most effective for this application?

A.A decision support system.

B.An executive support system.

C.An office automation system.

D.An enterprise resource planning system.

5.Which of the following is the best approach to mitigate alignment risk?

A.Assure top management support

B.Conduct training and provide incentives

C.Use the balanced scorecard framework

D.Use sensitivity analysis

6.Unauthorized alteration of records in a database system can be prevented by employing:

A.Key verification.

B.Computer matching.

C.Database access controls.

D.Regular review of audit trails.

7.The vice president of human resources has requested an audit to identify payroll overpayments for the previous year. Which would be the best audit technique to use in this situation?

A.Test data

B.Integrated test facility

C.Generalized audit software

D.Embedded audit module

8.A group of computers, printers, and other devices connected to the same network and covers a limited geographic range is called a:

A.VAN.

B.WAN.

C.LAN.

D.VPN.

9.The most common security threats for wireless LANs include:

A.Social engineering.

B.System malfunction.

C.Man-in-the-middle.

D.Virus.

10.Assume an IT project is expected to cost $20,000 up front, and it will provide net benefits that average $16,000 per year for the next 3 years. Then, Payback Period social engineering.

A.2.5 Years.

B.One Year.

C.3 Years.

D.1.25 Years

Question 1 (20 marks)

Computer-assisted Audit Techniques (CAATs) are imperative tools for auditors to conduct an audit in accordance with heightened auditing standards.

Discuss the above statement explaining:

The role of internal auditors according to auditing standards.

Different approaches to apply CAATs.

Question 2: State whether the following statements are TRUE (T) or FALSE (F)  (20 marks) 

1.The SQL command "Group by" can be used to order an amount in a descending order.

2.The asterisk following the select SQL statement is a wild card indicating all columns should be selected.

3.Access offers modules, which are defined by users to automate processes like opening a specific form.

4.XBRL instance documents describe each key data element (e.g., total assets, accounts, payable, net income, etc.).

5.A firewall allows individuals on the corporate network to send and receive data packets from the Internet  

6.Another name for data warehousing is data mining.

7.Data warehousing refers to the short-term storage of large amounts of data for an entire enterprise.    

8.An operating system handles input and output to and from attached hardware devices, such as hard disks, printers, and dial-up ports and sends messages to each application or interactive user about the status of operation and any errors that may have occurred. 

9.A virtual private network (VPN) sends encrypted messages though public Internet service providers. 

10.The data in a data warehouse are updated when transactions are processed.