The extent of an entity's use of IT can affect internal control.

Question

Quizplus · Accepted Answer

The use of IT can have a significant impact on the design and effectiveness of internal control procedures. Entities that heavily rely on IT systems for operations and financial reporting need to have robust IT controls in place to ensure the security, reliability, and accuracy of information. On the other hand, entities with less reliance on IT may have more manual control procedures to mitigate risks. The extent of an entity's use of IT is a crucial factor in assessing the adequacy of internal control.

The Extent of an Entity's Use of IT Can Affect