After Obtaining a Preliminary Understanding of a Client's Computer Controls,audit

question 79

Multiple Choice

After obtaining a preliminary understanding of a client's computer controls,audit teams may decide not to perform tests of controls.Which of the following would not be a valid reason for choosing to omit tests of controls?

• A) The client's computer controls duplicate manual controls existing elsewhere in the system.
• B) There appear to be major weaknesses that indicate a high level of control risk.
• C) The time and dollar costs of testing computer controls exceed the time and dollar savings in substantive procedures.
• D) The client's controls appear to function at an adequate level to justify a low assessment of control risk.

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Definitions:

Job Success

Achieving or exceeding the performance standards and goals set for a specific job role over a period.

Lawsuits

Legal actions or proceedings brought in a court, involving two or more parties in dispute seeking a legal judgment.

Paired-comparison Method

A technique used in research and decision-making that involves comparing each entity in a set with every other entity in pairs to judge which is preferable or has a certain characteristic to a greater degree.

Comparing

The act of evaluating two or more items to determine similarities, differences, or the relative merit of each.