Identify whether each of the following statements is appropriate for auditing around the computer (A), auditing through the computer (T), or auditing both around and through the computer (B).
____ 1. It is more likely to be utilized when the client’s computerized processing systems are relatively simple.
____ 2. The method is permitted under generally accepted auditing standards.
____ 3. It requires audit teams to evaluate and test the operating effectiveness of computer controls.
____ 4. It primarily concerns correspondence between input and output.
____ 5. The use of test data and parallel simulation are examples of this approach.
____ 6. It should be used with more complex computerized processing systems.
____ 7. Audit teams can design error conditions to evaluate how these conditions are processed.
____ 8. Audit teams are required to consider important computer controls that have been implemented by the client over computerized processing of transactions.
____ 9. It is more likely to be used when clients have not implemented extensive computer controls.
____ 10. It can be used to provide audit teams with a basis for assessing control risk.
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