When Companies Use Information Technology (IT) Extensively, Evidence May Be

question 348

Multiple Choice

When companies use information technology (IT) extensively, evidence may be available only in electronic form. What is an auditor's best course of action in such situations?

• A) Assess the control risk as high.
• B) Use audit software to perform analytical procedures.
• C) Use generalized audit software to extract evidence from client databases.
• D) Perform limited tests of controls over electronic data.

---

Definitions:

Physiological Measurement

The process of recording biological activities, such as heart rate or brain activity, often used in psychological research to assess responses.

Lie-Detector Test

A technique that attempts to determine if someone is lying by measuring physiological responses, such as blood pressure, pulse, and skin conductivity.

Genetics

The branch of biology that studies genes, heredity, and genetic variation in living organisms.

Environment

The surrounding conditions and influences affecting the growth and development of living organisms, including natural, social, and built factors.