The information systems audit specialist on your audit team has indicated that the general controls over program changes are excellent for all application cycles. What impact does this have on your audit of sales invoice processing?
A) Generalized audit software should be used to select a sample of sales transactions for control testing.
B) Tests of controls should be omitted; only substantive tests may be conducted.
C) There could be problems with the accuracy of calculations for sales taxes and goods and excise taxes.
D) The auditor can place reliance on the program's performance of sales calculations.

Question

Quizplus · Accepted Answer

The excellent general controls over program changes indicate that the program's performance is reliable and trustworthy. Therefore, the auditor can place reliance on the program's performance of sales calculations, and substantive tests of sales transactions might not be necessary.

The Information Systems Audit Specialist on Your Audit Team Has