Auditability CT-FT Practice Questions (Page 1)

Questions 1–5

1. 1foundation · easy

   Why is auditability important for compliance in financial systems?

   • AIt ensures that all financial transactions are processed in real time
   • BIt enables organizations to demonstrate that their financial processes and data are accurate and trustworthy to regulators and auditors
   • CIt eliminates the need for external audits by providing complete internal oversight
   • DIt guarantees that financial systems will never experience a security breach
   Reveal Solution Discussion Select an answer first
2. 2application · medium

   A financial services company is subject to the Sarbanes-Oxley Act (SOX) and must ensure that its financial reporting systems maintain audit trails. During a test planning meeting, a developer argues that audit trails are only needed for systems that handle cash transactions. Which response best addresses this misconception?

   • AAudit trails are only required for systems that are externally accessible.
   • BAudit trails are optional if the system has strong encryption.
   • CAudit trails are required for any system that directly or indirectly affects financial reporting, not just cash transactions.
   • DAudit trails are only needed for systems that have been in production for more than one year.
   Reveal Solution Discussion Select an answer first
4. 3application · medium

   A financial system processes transactions that are later aggregated into monthly reports. An auditor wants to verify that the reported totals match the individual transactions. Which audit trail feature enables this verification?

   • AThe ability to sort the audit log by user ID.
   • BThe ability to compress the audit log for storage.
   • CThe ability to trace each reported total back to the individual transaction entries.
   • DThe ability to export the audit log to a PDF file.
   Reveal Solution Discussion Select an answer first
5. 4application · medium

   A financial analyst is reconciling a discrepancy in a reported revenue figure. The analyst needs to trace the figure back to the original transactions. Which audit trail capability is most essential for this task?

   • AThe ability to link each reported figure to the underlying transactions and their processing history.
   • BThe ability to compress the audit log to save storage.
   • CThe ability to export the audit log to a spreadsheet.
   • DThe ability to display the audit log in real time.
   Reveal Solution Discussion Select an answer first
6. 5application · medium

   A test lead is designing tests to verify that a financial system's audit trail is tamper-proof. Which test approach best validates this requirement?

   • AAttempt to modify an existing audit log entry and verify that the system detects and prevents the change.
   • BConfirm that the audit log is backed up daily.
   • CCheck that the audit log is readable by all users.
   • DVerify that the audit log is stored on the same server as the application database.
   Reveal Solution Discussion Select an answer first