Which of the following is a significant risk to the auditor regarding an audit in a highly automated information environment?
A) does not place enough reliance on the processed information
B) places too much reliance on the processed information
C) processed information may not reveal the sources of the information
D) does not understand the processed information produced by the automated environment

Question

Quizplus · Accepted Answer

In a highly automated information environment, there is a risk that the auditor may place too much reliance on the processed information, assuming it to be accurate and reliable without conducting sufficient substantive tests to ensure its accuracy. This can result in a failure to detect errors or fraud that may have been present in the processed information. The other options (A, C, and D) are also risks but are not as significant as the risk of placing too much reliance on processed information.

Which of the Following Is a Significant Risk to the Auditor