Question: Why does an auditor need to understand a client's IT system? Explain how IT affects the financial statements.

Why does an auditor need to understand a client's IT system? Explain how IT affects the financial statements.

Step by Step Solution

★★★★★

3.41 Rating (173 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Information Technology IT is a critical part of a companys accounting process This typically include... View full answer

blur-text-image
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)

Word file Icon

787-B-A-A-P (1728).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

Q:

What does the auditor need to understand about the auditees control environment?

Q:

What does the auditor need to understand about the flow of transactions in the auditees information systems?

Q:

When does an auditor need to use the work of an expert? What additional requirements must the auditor meet to use an experts work as evidence?

Q:

ACC555 FINAL EXAM NAME _______________________________ 1. The 10,000 accounts receivable of DEF Company have a total book value of $120,000. A CPA has selected and audited a sample of 100 accounts...

Q:

ACCT 612 FINAL EXAM SECTION 1: 2 POINTS EACH. PLEASE SELECT THE BEST ANSWER TO EACH OF THE FOLLOWING QUESTIONS. 1) Which of the following best describes the test data approach? A) Auditors process...

Q:

SECTION A (30 marks) This section consists of ONE (1) compulsory question QUESTION 1 (30 marks) ABC Ltd is a wholesaler of furniture which has been in operation for ten years. It buys furniture from...

Q:

Sharon and Josh have already discussed some specific client acceptance issues, such as independence threats and safeguards. Sharon explains they also must consider the overall integrity of the client...

Q:

AUDITING AND ASSURANCE SERVICES - QUESTION 12 & 13 - PLEASE AND THANK YOU! (BOTH QUESTION ANSWERS MUST BE 100-200 WORDS LONG) 12. You purchased a company's stocks and you suffered a big loss as a...

Q:

Please see the attached items. I need help completing. ACCT 612 FINAL EXAM SECTION 1: 2 POINTS EACH. PLEASE SELECT THE BEST ANSWER TO EACH OF THE FOLLOWING QUESTIONS. 1) Which of the following best...

Q:

subject: Auditing and Assurance Principles After completing and discussing this case you should be able to Understand the types of information relevant to evaluating a prospective audit client List...

Q:

Superheated refrigerant R-134a at 20C, 0.5 MPa is cooled in a piston/cylinder arrangement at constant temperature to a final two-phase state with quality of 50%. The refrigerant mass is 5 kg, and...

Q:

A car of mass m is driving over the crest of a hill. At the top of the hill, the car has a non-zero speed and is speeding up. If the magnitude of the gravitational force is F G and the magnitude of...

Q:

The IRR is the point on the NPV profile where: Group of answer choices the cost of capital equals the hurdle rate the NPV is equal or greater than 0 the NPV equals 0 the cost of capital is equal to...

Q:

Analyse why the number of tourists and the type of holiday they buy depends on whether economies are in recession or growing rapidly.

Q:

Carl's Computers imports computer hardware and accessories from China, Japan, Korea, and the United States. It has branches in every capital city, and the main administration office and central...

Q:

LLL Avionics Ltd. has contacted your certified general accounting firm to inquire about the cost of an external audit. The company's president explained that he feels that "the previous auditor...

Q:

LLL Avionics Ltd. has contacted your certified general accounting firm to inquire about the cost of an external audit. The company's president explained that he feels that "the previous auditor...

Q:

Question 7-4 Problem 7-17 (45 minutes) 1. Under the traditional direct labor-hour based costing system, manufacturing overhead is applied to products using the predetermined overhead rate computed as...

Q:

An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity of 8.6%. Bond C pays a 10.5% annual coupon, while...

Q:

4) hybrid loans A 3/1 hybrid mortgage loan is granted in the amount of $100,000 with a maturity of 30 years and an interest rate of 7%, which is the prevailing market rate. At the end of three years,...