Identify Whether Each of the Following Statements Is Appropriate for Auditing

question 108

Short Answer

Identify whether each of the following statements is appropriate for auditing around the computer (A),auditing through the computer (T),or auditing both around and through the computer (B).
____ 1.It is more likely to be utilized when the client's computerized processing systems are relatively simple.
____ 2.The method is permitted under generally accepted auditing standards.
____ 3.It requires audit teams to evaluate and test the operating effectiveness of computer controls.
____ 4.It primarily concerns correspondence between input and output.
____ 5.The use of test data and parallel simulation are examples of this approach.
____ 6.It should be used with more complex computerized processing systems.
____ 7.Audit teams can design error conditions to evaluate how these conditions are processed.
____ 8.Audit teams are required to consider important computer controls that have been implemented by the client over computerized processing of transactions.
____ 9.It is more likely to be used when clients have not implemented extensive computer controls.
____ 10.It can be used to provide audit teams with a basis for assessing control risk.