Re-Tool Corporation, one of the firm’s larger audit clients, has a data processing staff of approximately 75 individuals. Past audits have indicated that the general control environment is effective. During the past year, the client has revised the method of controlling changes to existing programs.

The client believes that the changes in procedures represent an overall improvement in controls. This is your first year on the audit, and the partner assigns you the task of gathering information about the revisions in procedures regarding program changes, evaluating the control risk apparent in the changes, and, if merited, testing the operations of the control process.

Required:

a. What are the major control objectives for the application program change process?

b. What major elements should the client have implemented to control the program change process?

c. Identify the audit procedures the auditor might use to test the effectiveness of the operation of the control process for application program changes.