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

question 32

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 section of the client's internal control.Which of the following justifications 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:

Unsaturated Fatty Acids

Fatty acids that contain one or more double bonds between carbon atoms, which can be healthier than saturated fats and found in oils from vegetables, nuts, and fish.

Monounsaturated Fats

A type of healthy fat found in various oils and nuts that can help to lower bad cholesterol levels.

Cholesterol

A waxy, fat-like substance found in all cells of the body, necessary for making hormones, vitamin D, and substances that help digest foods.

Dysphagia

Difficulty or discomfort in swallowing, as a symptom of disease.