It Is Important for the Auditor to Understand Both the General

question 59

Multiple Choice

It is important for the auditor to understand both the general controls and the application controls a company has implemented.Which of the following statements is true about these controls?

• A)Auditors do not link IT controls to audit objectives.
• B)After identifying specific IT-based application controls that can be used to reduce control risk, auditors can reduce substantive testing.
• C)General controls affect audit objectives in only one cycle.
• D)The impact of general controls and application controls on audits does not vary depending on the level of complexity in the IT environment.

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