Questions

1Explain how client internal controls can be improved through the proper installation of IT.

2Identify risks for accounting systems that rely heavily on IT functions.

3Define what is meant by an audit trail and explain how it can be affected by the client's integration of IT.

4Distinguish between random error resulting from manual processing and systematic error resulting from IT processing and give an example of each category of error.

5Explain how the effectiveness of general controls affects the auditor's tests of automated application controls, including the auditor's ability to rely on tests done in prior audits