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Nicky and Steve, audit managers working for Templeton CPAs, are discussing the pros and cons of a new IT system one of their major clients
Nicky and Steve, audit managers working for Templeton CPAs, are discussing the pros and cons of a new IT system one of their major
clients recently installed. Which of the following statements correctly lists a pro and con of IT systems?
A An IT system will not process inaccurate data, which will alert the auditors to potential problems.
B An effective IT system produces less documentary evidence for the auditors to have to deal with, but also saves the firm
money on paper printouts.
C IT systems are likely to reduce the effectiveness of internal control, and cause auditors to increase detection risk.
D An effective IT system may help to ensure more consistency and accuracy in processing, but may also be more prone to
outside attacks such as hacks and phishing attempts
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