After Obtaining an Initial Understanding of a Client's IT Controls

question 42

Multiple Choice

After obtaining an initial understanding of a client's IT controls, an auditor may decide not to perform tests of controls related to the control procedures within the IT portion of the client's internal control. Which of the following would not be a valid reason for choosing to omit tests of controls?

• A) The controls appear adequate.
• B) The controls duplicate operative controls existing elsewhere in the system.
• C) There appear to be major deficiencies that would preclude using the stated procedure as a basis to reduce the assessed level.
• D) 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.

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Definitions:

Control Another

The act or intention of influencing or directing the behavior of another person without their consent.

Basic Security

A sense of safety and stability that is foundational for an individual's mental and emotional well-being, influenced by factors like environment, relationships, and basic needs.

Control Theory

A theory in psychology and sociology that examines how external rules, regulations, and feedback mechanisms influence behavior and social order.

Physical Survival Needs

Basic necessities required for human survival, including food, water, shelter, and clothing.