The Information Systems Audit Specialist on Your Audit Team Has

question 18

Multiple Choice

The information systems audit specialist on your audit team has indicated that the general controls over program changes are inadequate for all application cycles. What impact does this have on your audit of sales invoice processing?

• A) The auditor could potentially rely on only manual controls.
• B) Only interdependent controls should be considered for control testing.
• C) It is likely that calculations, such as extensions, are performed consistently and accurately throughout the year.
• D) Unauthorized access to information recorded in the master files is likely.

---

Definitions:

Operating Reserves

Funds set aside by an organization to support operations and ensure financial stability in the event of unexpected circumstances or emergencies.

Short-Term Instruments

Financial tools or securities that have a short maturity period, often less than one year, used for investment purposes.

Bookkeeping

The routine recording and organization of financial transactions in a systematic manner, essential for effective financial management.

Record Keeping

The maintenance of accurate and systematic records, particularly for the purposes of managing information and complying with legal requirements.