Indicate whether you agree or disagree with the following statements and explain your reasoning.
a) The audit senior was explaining how different controls work: "Detective controls can be applied to each transaction during normal processing to avoid errors occurring."
b) The public accountant was reviewing the audit program and was convinced that the following item did not belong in the IT General Controls (ITGC) part of her audit program: "Program change controls - only appropriately authorized, tested and approved changes are made to applications, interfaces, databases and operating systems. All changes are documented so systems documentation is up to date."
c) The techniques for testing are made up of enquiry, observation, inspection of physical evidence and re-performance. Inspection of physical evidence relies on the auditor testing the physical evidence to verify that a control has been performed properly.
d) The manager of a large client realizes that when testing controls, either statistically based sampling techniques or professional judgment can be used to determine the extent of testing. One of the factors to con?sider when deciding the extent of testing should include the competence of the person who performs the control.

Question

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The Answer of Indicate whether you agree or disagree with the following statements and explain your reasoning.
a) The audit senior was explaining how different controls work: "Detective controls can be applied to each transaction during normal processing to avoid errors occurring."
b) The public accountant was reviewing the audit program and was convinced that the following item did not belong in the IT General Controls (ITGC) part of her audit program: "Program change controls - only appropriately authorized, tested and approved changes are made to applications, interfaces, databases and operating systems. All changes are documented so systems documentation is up to date."
c) The techniques for testing are made up of enquiry, observation, inspection of physical evidence and re-performance. Inspection of physical evidence relies on the auditor testing the physical evidence to verify that a control has been performed properly.
d) The manager of a large client realizes that when testing controls, either statistically based sampling techniques or professional judgment can be used to determine the extent of testing. One of the factors to con?sider when deciding the extent of testing should include the competence of the person who performs the control.

Indicate Whether You Agree or Disagree with the Following Statements