State Whether Each of the Following Statements Is Correct or Incorrect

question 52

Short Answer

State whether each of the following statements is correct or incorrect.
A. Specialists with specialized skills in IT processing are seldom used on audits since each audit team member is expected to have the necessary skills.
B. The nature of the IT-based system may affect the specific procedures employed by the auditors in testing the controls.
C. Computer assisted audit techniques, while helpful for tests of controls, are seldom helpful for substantive procedures.
D. Parallel simulation involves the use of audit software to process functions essentially equivalent to those of the client's program and to determine whether auditor and client results are equivalent.

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Definitions:

Oral Promise

A commitment or agreement made through spoken words rather than in writing, subject to limitations under the law for enforceability.

Enforceable

Capable of being imposed, executed, or upheld by law.

Parol Evidence Rule

A legal principle in contract law that prevents parties from modifying a written contract using oral or implied agreements not included in the original document.

Subsequent Agreements

Agreements made after the original agreement, which may modify or affect the terms of the original.