n the aftermath of the initial stage of examining a client's computer controls, an auditor might choose not to conduct compliance tests concerning the controls within the computer segment of the client's internal control. Which of the following reasons would be considered invalid for opting to exclude such tests? Select one: a. The controls duplicate operative controls existing elsewhere in the structure. b. The time and dollar costs of testing exceed the time and dollar savings in substantive testing if the tests of controls show the controls to be operative. c. There appear to be major weaknesses that would preclude reliance on the stated procedure. d. The controls appear adequate.
n the aftermath of the initial stage of examining a client's computer controls, an auditor might choose not to conduct compliance tests concerning the controls within the computer segment of the client's internal control. Which of the following reasons would be considered invalid for opting to exclude such tests? Select one: a. The controls duplicate operative controls existing elsewhere in the structure. b. The time and dollar costs of testing exceed the time and dollar savings in substantive testing if the tests of controls show the controls to be operative. c. There appear to be major weaknesses that would preclude reliance on the stated procedure. d. The controls appear adequate.
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter9: Auditing The Revenue Cycle.
Section: Chapter Questions
Problem 27CYBK
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In the aftermath of the initial stage of examining a client's computer controls, an auditor might choose not to conduct compliance tests concerning the controls within the computer segment of the client's internal control. Which of the following reasons would be considered invalid for opting to exclude such tests?
Select one:
a.
The controls duplicate operative controls existing elsewhere in the structure.
b.
The time and dollar costs of testing exceed the time and dollar savings in substantive testing if the tests of controls show the controls to be operative.
c.
There appear to be major weaknesses that would preclude reliance on the stated procedure.
d.
The controls appear adequate.
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