When Audit Clients Acquire New, More Sophisticated IT Systems

question 13

Multiple Choice

When audit clients acquire new, more sophisticated IT systems,

• A) The audit strategy will not be impacted as long as the duties of accounting personnel are primarily unchanged.
• B) Auditors with advanced IT knowledge may need to be added to the audit team.
• C) The design of internal controls will be considered ineffective until those new controls have been tested.
• D) The timing of the auditor's procedures for reviewing interim financial statements will be accelerated.

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Definitions:

Regression Analysis

A statistical method used to determine the strength and character of the relationship between one dependent variable and one or more independent variables.

Linear Equation

An algebraic equation in which each term is either a constant or the product of a constant and a single variable, and it graphically represents a straight line.

Causal Variable

A causal variable is a factor that directly influences the outcome of an experiment or study, indicating a cause-and-effect relationship.

Staffing Table

Total HR demand requirement for operational or short-run time periods.