Audit Teams Cannot Test the Reliable Operation of Computer Control

question 107

Multiple Choice

Audit teams cannot test the reliable operation of computer control procedures by

• A) Submitting test data at several different times for processing on the computer program the client uses for actual transaction processing.
• B) Manually comparing detailed transactions that the internal auditors used to test a program to the program's actual error messages.
• C) Programming a model transaction processing system and processing actual client transactions for comparison to the output produced by the client's program.
• D) Manually reperforming actual transaction processing with comparison of results to the actual system output.

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Definitions:

Securities Dealers

Financial professionals who buy and sell securities on behalf of their clients, and sometimes for their own accounts.

Stock Brokers

Professionals who act as intermediaries between investors and the stock market, facilitating the buy and sell transactions of stocks on behalf of their clients.

Banks

Financial institutions licensed to receive deposits and provide loans to individuals and businesses.

Primary Market Transaction

A financial transaction that occurs when a company first sells its securities directly to investors, such as through an initial public offering (IPO).