When a client company's systems rely heavily on IT, auditors will be concerned with the possibility that:
A) unauthorized program changes could result in a system that uniformly processes data in an unauthorized manner.
B) embedded controls are likely to be circumvented.
C) risk of material misstatement is likely to increase as the complexity of the client's IT system increases.
D) specialized IT knowledge on the audit engagement team is not necessary unless the client company engages in electronic commerce.

Question

Quizplus · Accepted Answer

When a client company's systems rely heavily on IT, auditors will be concerned with the possibility that unauthorized program changes could result in a system that uniformly processes data in an unauthorized manner. This can lead to material misstatement and fraud. Therefore, auditors need to assess the risk of unauthorized program changes and check whether the system is protected against such changes.

When a Client Company's Systems Rely Heavily on IT, Auditors