Explain how poorly designed audit trail logs can actually be dysfunctional.
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Explain how poorly designed audit trail logs can actually be dysfunctional.
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- Explain the importance of auditing in reducing information risk.If detective controls signal error flags, why shouldn’t this type of controls automatically make a correction in the identified errors? Why are corrective controls necessary?If detective controls signal error flags, why shouldn’t these types of controls automatically make a correction in the identified error? Why are corrective controls necessary?
- Evaluating data reliability is a critical part of the audit process. Explain the differences among the following in terms of reliability: Data obtained from original documents versus electronic scans.EExplain what lapping means, and discuss the internal control deficiency that allows it to occur. Also discuss the procedures the auditor can perform to detect lapping.When using test data, why are audit teams required to prepare only one transaction to test each IT control?a. The speed and efficiency of the computer results in reduced sample sizes.b. The risk of misstatement is typically lower in an IT environment.c. Audit teams generally perform more extensive substantive testing in an IT environment, resulting in less need to test processing controls.d. In an IT environment, each transaction is handled in an identical manner.
- What tests may be conducted for identifying unauthorized program changes?Explain the safeguards that can be used to reduce or eliminate threats to audit independence.When searching for the root cause of issues, auditors are effectively searching for the source of variation, which are often grouped into categories, which categories is not included. a. machines b. measurements c. system d. people