Principles Of Auditing & Other Assurance Services
21st Edition
ISBN: 9781259916984
Author: WHITTINGTON, Ray, Pany, Kurt
Publisher: Mcgraw-hill Education,
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Question
Chapter 8, Problem 28QRA
a.
To determine
Explain the controls that should be maintained by the company to ensure the accuracy of processing done by a cloud service provider.
b.
To determine
Explain the process of assessing the internal control over applications processed for an audit client by a cloud service provider.
c.
To determine
Explain the report on the processing of transactions by a service organization.
d.
To determine
Explain two types of reports prepared by the service auditor.
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Students have asked these similar questions
Which of the following is an example of an input control?
a.making sure report that are distributed to the proper people
b.monitoring the work of data entry clerks.
c. Collecting accurate statistics of historical transactions while gathering data.
d. Performing a check-digit test on a customer acount number
e.Having anothr person review the design of a business form
A CIS environment exists when a computer of any type o. size is involved in the
processing of an entity's financial information. If an auditor is involved in the
configuration and system development prior to the implementation, is the financial
information is considered reliable and free from error?
1.Explain the relation ship between application controls and transaction related audit objectives .
2.explain what is meant by auditing around the computer and describe what must be present for this approach to be effective when auditing clients who use IT to process accounting information
3.explain what meant by the test data approach. What are the major difficulties with using this approach?define parallel simulation with audit software and provide an exmaple of how it can be used to test a client's payroll system
4.describe risks that are associated with purchasing software to be installed on desktop computer hard drives.what precautions can clients take to reduce those risks?
5.compare the risks associated with network systems to those associated with centralized IT functions
6.how does the use of a database management system affect risks?
7.an audit client is in the process of creating an online web-based sales ordering system for customers to purchase products using personal…
Chapter 8 Solutions
Principles Of Auditing & Other Assurance Services
Ch. 8 - List and describe the major components of an...Ch. 8 - Prob. 2RQCh. 8 - Prob. 3RQCh. 8 - Prob. 4RQCh. 8 - Prob. 5RQCh. 8 - Distinguish general control activities from...Ch. 8 - Prob. 7RQCh. 8 - Prob. 8RQCh. 8 - Prob. 9RQCh. 8 - Prob. 10RQ
Ch. 8 - Prob. 11RQCh. 8 - Prob. 12RQCh. 8 - Prob. 13RQCh. 8 - What is the difference between an Internet-based...Ch. 8 - Prob. 15RQCh. 8 - Prob. 16RQCh. 8 - Prob. 17RQCh. 8 - Prob. 18RQCh. 8 - Prob. 19RQCh. 8 - Prob. 20RQCh. 8 - Prob. 21RQCh. 8 - Prob. 22QRACh. 8 - Prob. 23QRACh. 8 - Prob. 24QRACh. 8 - Prob. 25QRACh. 8 - Prob. 26QRACh. 8 - Prob. 27QRACh. 8 - Prob. 28QRACh. 8 - Prob. 29AOQCh. 8 - Prob. 29BOQCh. 8 - Prob. 29COQCh. 8 - Prob. 29DOQCh. 8 - When an online real-time (OLRT) IT processing...Ch. 8 - Prob. 29FOQCh. 8 - Prob. 29GOQCh. 8 - Prob. 29HOQCh. 8 - Prob. 29IOQCh. 8 - Prob. 29JOQCh. 8 - Prob. 29KOQCh. 8 - Prob. 29LOQCh. 8 - Prob. 30OQCh. 8 - Prob. 31OQCh. 8 - For each definition (or partial definition) in the...Ch. 8 - Prob. 33PCh. 8 - Prob. 34PCh. 8 - Prob. 35PCh. 8 - Prob. 36PCh. 8 - Prob. 37PCh. 8 - Prob. 38ITC
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Similar questions
- Computer accounting control procedures are referred to as general or application controls. The primary objective of application controls in a computer environment is toa. ensure that the computer system operates efficiently.b. ensure the validity, completeness, and accuracy of financial transactions.c. provide controls over the electronic functioning of the hardware.d. plan for the protection of the facilities and backup for the systems.arrow_forwardExplain how internal control can be enhanced through the proper installation of Information Technology Identify the risks for accounting systems that rely heavily on IT functions. Distinguish between general controls and application controls and give examples at least five Which duties should be segregated in a computer department? Describe the typical duties of computer personnel. What aspects of documentation, file security and retention control procedures are unique to computer systems? What are the responsibilities of the database administrator (DBA) function? Compare the risks associated with network environment to those associated with centralized IT functions.arrow_forwardCPAs may audit around or through computers in the audit of the financial statements of clients who use IT to process accounting data. c. In auditing through the computer, CPAs may use test data. (1) What are test data? (2) Why do CPAs use test data?arrow_forward
- Describe the differences between auditing around the computer and auditing through the computer? Which one is more effective in a computerized accounting information system? Why?arrow_forwardHow can organizations ensure the seamless integration of computerized accounting systems with other business processes, and what measures should be implemented to enhance the security and confidentiality of financial data within these systems?arrow_forward1. Explain how client internal controls can be improved through the proper installation of IT. 2. Distinguish between random error resulting from manual processing and systematic error resulting from IT processing and give an example of each category of error. 3. Explain what is meant by auditing around the computer, and describe what must be present for this approach to be effective in the audit of a client that uses IT to process accounting information. 4. An audit client is in the process of creating an online Web-based sales ordering system for customers to purchase products using personal credit cards for payment. Identify three risks related to an online sales system that management should consider. For each risk, identify an internal control that could be implemented to reduce that risk. 00000000000arrow_forward
- Your client has outsourced the majority of the accounting information system to a third-party data center. What impact does that have on your audit of the financial statements?arrow_forward1. Data under a traditional ledger system is authenticated by a central authority while data under a blockchain is authenticated through Select one: a. central authority. b. a party outside the blockchain. C. mass collaboration. d. an external audit. 2 Analyzing data with the purpose of determining a casual relationship refers to Select one: a. predictive analytics. b. descriptive analytics. c. diagnostic analytics. d. prescriptive analytics. 3. Which of the following items is not an application of blockchain? Select one: a. joining ERP systems from multinational subsidaries. b. continual updating of real-time data on customer preferences. C. continual updating of financial statements with new transactions. d. joining ERP systems from different companies.arrow_forwardCPAs may audit around or through computers in the audit of the financial statements of clients who use IT to process accounting data. d. How can the CPAs be satisfied that the computer programs presented to them for testing are actually those used by the client for processing accounting data?arrow_forward
- Consider “control environment.” Why it is important for auditors to understand a client’s control environment. What are some limitations of internal controls? Now consider “segregation of duties.” Determine why it is important in an IT environment. What are some advantages of using IT and audit software when conducting an audit?arrow_forwardAn internal auditor is examining the effectiveness of procedures management established to protect customer data from cyberattacks and whether those procedures are cost effective. This is an example of an operational audit. Question options: True Falsearrow_forwardWhy is segregation of duties important in an IT environment. What are some advantages of using IT and audit software when conducting an audit?arrow_forward
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