Audit engagement programs testing internal controls should:

(a) Be tailored for the audit of each operation.

(b) Be generalized to fit all situations without regard to departmental lines.

(c) Be generalized so as to be usable at various international locations of an organization.

(d) Reduce costly duplication of effort by ensuring that every aspect of an operation is examined.

A company maintains production data on personal computers, connected by a local area network (LAN), and uses the data to generate automatic purchases via electronic data interchange.
Purchases are made from authorized vendors based on production plans for the next month and on an authorized materials requirements plan (MRP) which identifies the parts needed for each unit of production.