The following questions concern auditing IT systems. Choose the best response. a. As general IT controls weaken,
Question:
The following questions concern auditing IT systems. Choose the best response.
a. As general IT controls weaken, the auditor is most likely to
(1) Reduce testing of automated application controls done by the computer.
(2) Increase testing of general IT controls to conclude whether they are operating effectively.
(3) Expand testing of automated application controls used to reduce control risk to cover greater portions of the fiscal year under audit.
(4) Ignore obtaining knowledge about the design of general IT controls and whether they have been implemented.
b. Before processing, the system validates the sequence of items to identify any breaks in sequence of input documents. This automated control is primarily designed to ensure the
(1) Accuracy of input.
(2) Authorization of data entry.
(3) Completeness of input.
(4) Restriction of duplicate entries.
c. An auditor will use the test data approach to obtain certain assurances with respect to the
(1) Input data.
(2) Machine capacity.
(3) Procedures contained within the program.
(4) Degree of data entry accuracy.
Step by Step Answer:
Auditing And Assurance Services An Integrated Approach
ISBN: 9780135176146
17th Edition
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley