Example 2 Audit risks associated with IPE from a transaction process Complete the following table, indicating which risk (by number and description) is associated with each processing error Risk Processing error Information about shipments is input manually into the information technology (IT) application. The shipping clerk mistypes the quantity shipped and the edit check designed to check the quantity entered did not function correctly resulting in an error in the quantity recorded as shipped in the IT application The excess and obsolete inventory reserve computation begins with inventory reports and sales reports generated from a separate IT application. These reports are output from the IT application into Excel. The Excel formulas are supposed to match the sales and inventory on hand data for each inventory item and compute inventory turns, which are then used in the calculation of the excess and obsolete inventory reserve. Incorrect formulas in Excel result in errors in the matching and computation process For an aged customer list of unpaid amounts produced by the accounts payable IT application, the aged columns are not totaled accurately numberRisk description Is when data is processed by the IT application from which the IPE is produced but not completel accurate