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:

Coming Out

The process of acknowledging one's sexuality or gender identity to oneself and then to others.

Gay or Lesbian

Relating to a person who is emotionally, romantically, or sexually attracted to members of the same gender.

Prior Generations

Previous sets of people who came before the current generation, often used in discussions about family lineage or societal changes.

Self-Esteem

The perception of one’s own value and worth as a person, impacting one's confidence and self-respect.