Question: When using test data, why are audit teams required to prepare only one transaction to test each IT control? a. The speed and efficiency of

When using test data, why are audit teams required to prepare only one transaction to test each IT control?
a. The speed and efficiency of the computer results in reduced sample sizes.
b. The risk of misstatement is typically lower in an IT environment.
c. Audit teams generally perform more extensive substantive testing in an IT environment, resulting in less need to test processing controls.
d. In an IT environment, each transaction is handled in an identical manner.

Step by Step Solution

★★★★★

3.39 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Incorrect The speed and efficiency of the computer would enable more transactions to ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

332-B-A-A-A-N (2766).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

Why would an auditor perform more substantive testing for one part of the fiscal year and less substantive testing for another part of the year?

Using a double-angle or half-angle formula to simplify the given e (a) If cos (34 ) sin (34) = cos(A), then degrees (b) If cos (6x) - sin (6x) = cos(B), then A = B =

Scenario An existing path is to be converted into a paved road, but its alignment needs to be plotted correctly to avoid certain obstacles indicated in the map data and satisfy certain conditions....

When using test data, why are audit teams required to prepare only one transaction to test each IT control? Multiple Choice The risk of misstatement is typically lower in an IT environment. The speed...

When using test data, why are audit teams required to prepare only one transaction to test each IT control?

Audit and assurance 12) Which of the following audit procedures should be performed to cover existence assertion for receivables balances? A. Inspect the goods received note to determine when the...

General instructions Scenario based project must be submitted online through Turnitin before due date. The only circumstance in which assignments can be uploaded late via Turnitin is if a Mitigating...

The following information was extracted from the draft financial statement of Hanna Wholesale Co as at 30 April 2019: $ Trade payables 509,200 Purchase accruals 27,050 536,250 Sundry payables and...

i have home work case study can I get help Inside the Value of the SAP S/4HANA for Financial Products Subledger Solution Digital transformation is paving the way for insurance companies to modernize...

In this assignment, you will prepare a 23 page report that addresses the requirements specified in the case. Fully address each requirement and include at least two current references to scholarly...

You are considering a project with an initial cash outlay of $ 80,000 and expected free cash flows of $ 20,000 at the end of each year for 6 years. The required rate of return for this project is 10...

Eaton Company is a pesticide manufacturer. Its sales declined greatly this year due to the passage of legislation outlawing the sale of several of Eatons chemical pesticides. During the coming year,...

A change in dividend policy does not affect the value of a share of stock as long as:

You have been selected as the project manager for the development of a web-based stock trading application. The project sponsors asked you to perform an assessment that will produce a project scope...

What are the steps in a legal action up to and including the trial? What happens during each step?

What are the differences between a civil and criminal case?

What circumstances lead to a negligence cause of action against an auditor?

JA An amount of $21,000 invested for 7 years at the rate of 8% compounded continuously grows closest to what value? $29,500 $32,230 $36,000 $30,000 $36,760

1a)When retained earnings are exhausted, the MCC breaks upward. What happens if the firm continues to raise capital after that? Does the MCC remain flat or move further upward? In either case, why?...

Suppose we are thinking about replacing an old computer with a new one. The old one cost us $1,370,000; the new one will cost, $1,630,000. The new machine will be depreciated straight-line to zero...