In Which of the Following Situations Would an Auditor Most

question 40

Multiple Choice

In which of the following situations would an auditor most likely use a strategy of reliance on internal control?

• A)The systems analyst reviews output and controls the distribution of output from the IT department.
• B)The entity has been slow to update its IT system to reflect changes in billing practices.
• C)No paper trail is generated, as the entity receives sales orders, bills customers and receives payment based only on information generated from IT.
• D)The auditor has been unable to determine whether all changes to a client's IT were properly authorised.

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Definitions:

Diggers

A group of radical English Protestant agrarians who, in the 17th century, advocated for communal land ownership and the redistribution of land.

Political Unrest

Refers to a period of public dissatisfaction or protest against governments or political systems, often leading to instability.

English Civil War

A series of armed conflicts and political machinations between Parliamentarians and Royalists from 1642 to 1651 in England, concerning governance and authority issues.

Sovereignty

The authority of a state to govern itself or another state, encompassing the concept of absolute power and independence within a territory.