If detective controls signal error flags, why shouldn’t these types of controls automatically make a correction in the identified error? Why are corrective controls necessary?

Q: You have a client where you are not required to test their controls. However you may choose to do…

A: We perform the test of controls to evaluate whether the controls are working effectively for two…

Q: n audit procedure designed to evaluate the operating effectiveness of controls in preventing or…

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Q: What items could increase the risk of material misstatement?

A: Risk of material misstatement (ROMM) is a risk that the financial statements when audited will…

Q: Why is poor-quality systems documentation a prevalent problem?

A: Computer Based Information System: Computer based information system refers to the record of data…

Q: Compare the designs of your choice of two internal controls. Determine which is the preferred design…

A: Preventive control is the most important control out of the other internal controls because it…

Q: Why is human behavior considered one of the biggest potential threats to operating system integrity?

A: Operating system: The system which provides the basic functioning of a device by interconnecting the…

Q: What is the control issue related to reentering corrected error records into a batch processing…

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Q: How audit programs that need to be made to detect vulnerabilities in the firewall?

A: Auditing for security is very important and requires frequent and strict auditing that covers…

Q: Determine if the mistake is counterbalancing or noncounterbalancing. Give a specific example for…

A: The mistake is counterbalancing or noncounterbalancing will be explained:

Q: In scanning environment, why the strategic auditor focuses more on external environment rather than…

A: Environmental scanning refers to the possession and utilization of knowledge regarding different…

Q: Give an explanation about this statement: Why does control or internal control fails?

A: Internal control refers to the process of implementing and exercising the various mechanisms, rules,…

Q: Which of the following is NOT an advantage ofcommercial software?a. Costb. Independencec.…

A: The software market has infiltrated every aspect of a business or service as technology has…

Q: What is lapping? What procedures can auditors employ to detect lapping?

A: Lapping: It refers to a type of accounting fraud that involves the hiding of misappropriated or…

Q: program itself will:

A: Auditing is the investigation, inspection, or examination of the financial statements of an…

Q: When using test data, why are audit teams required to prepare only one transaction to test each IT…

A: Audit test data is used to test the existence and effectiveness of controls built into an…

Q: Discuss the importance of supervision controls in the receiving department and the reasons behind…

A: Receiving Department:   The receiving department is in obligation of inspection and the receiving…

Q: Define check tampering.

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Q: What factors do you think might cause an auditing team to spend more time than average on tests to…

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Q: How does the Representational faithfulness is enhanced if information is free from error?

A: Accounting:   Accounting is the process of recording the financial transaction of the organization…

Q: Distinguish between counterbalancing and noncounterbalancing errors. Give an example of each.

A: Difference:Counterbalancing errors are the type of errors that cancels out or equalize other error…

Q: The following questions/inquiries can be used in determining risk, EXCEPT: CHOICES: A)What is the…

A: A risk is something that could affect the entity from achieving its goals and objectives. For the…

Q: What are some suggestions for risk management, typical response tactics, and IT system recovery…

A: Risk management:  A system of people, processes, and technology called risk management helps a…

Q: It's important to explain what lapping is and how an auditor may find it. When should the auditor…

A: This question explains about what lapping is and how an auditor may find it.

Q: Disruptions to operations are a common side effect of implementing an ERP. Explain the primary…

A: ERP: Enterprise resource planning is management software that helps in integrating all the…

Q: what are the difference between Preventive Controls and Detective Controls?

A: Financial Reporting control activities are imposed on the accounting standard for the purpose of…

Q: Briefly describe record counts, batch totals, and hash totals. What types of errors in input…

A: Input controls: It is created to provide reasonable guarantee of received data for processing by the…

Q: Explain how poorly designed audit trail logs can actually be dysfunctional.

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Q: a. Identify the internal control weaknesses in this system. b. Describe the uncontrolled risks that…

A: Internal Control Weaknesses:   Internal control weaknesses can be defined as the lack of the…

Q: What tests may be conducted for identifying unauthorized program changes?

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Q: an introduction about the effect of artificial inteligence on audit

A: The on-site verification activity of a process or quality system, such as inspection or examination,…

Q: What is lapping?  How can it be detected by an auditor and how can it be prevented?

A: Lapping is an accounting fraud where cash stolen or cash misappropriation is concealed by altering…

Q: When is the timing of substantive procedures most flexible? O detection risk is assessed as low O…

A: Substantive procedure refers to a process performed by the auditor in order to detect the material…

Q: Which of the following is NOT a common type of white box test of controls?a. completeness testsb.…

A: Inference tests is NOT a common type of white box test of controls so the correct option in the…

Q: Operational risks may result from breakdowns in ______ procedures, people and systems as opposed to…

A: Operational risks Operational risks are referred to as that risk that includes errors because of the…

Q: Which of the following is NOT a data communications control objective?a. maintaining the critical…

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Q: During a test data procedure, why should the developers bother testing bad data?

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Q: Why might an auditor use a program flowchart?

A: Flowchart:   Flowchart is representation of procedures concerned with the transactions in the…

Q: Inspector expenses and other expenses that are designed to ensure quality or uncover defects are…

A: Company starts processing of work after some planning of costs, revenue or processes to be followed.…

Q: Why is it risky to allow programmers to create user subschemas and assign access authority to users?…

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Q: What is the difference between document examination and reperformance when conducting tests of…

A: Test of controls are performed to obtain evidence about whether controls that are candidates to be…

Q: Matching Type: Choose appropriate controls with the given possible frauds and errors. - You can…

A: Possible Errors and Fraud Controls Details 1 C Monthly statements are mailed to all customers with…

Q: What is check kiting? How might auditors detect kiting?

A: Auditing refers to the process of scrutinizing the financial statement of the business entity and…