Question

If the auditor wants to evaluate the internal controls in the entity, what control systems should the auditor test?

1) All of the choices are correct.
2) Controls over electronic data interchange
3) Controls over the exchange of electronic information about a transaction between the client and its customers or suppliers
4) Information technology general controls

Answer 1

The auditor should test controls over electronic data interchange, controls over the exchange of electronic information about a transaction, and information technology general controls.

Step-by-step explanation:

When evaluating internal controls in an entity, the auditor can test several control systems. These include controls over electronic data interchange (EDI), controls over the exchange of electronic information about a transaction between the client and its customers or suppliers, and information technology general controls.

Controls over EDI are important because they ensure the accuracy, completeness, and security of electronically exchanged data. Controls over the exchange of electronic information about a transaction help protect sensitive information from unauthorized access and ensure the integrity of the transaction process. Information technology general controls refer to controls over the overall IT environment, such as security policies, access controls, and system development practices.

To evaluate these control systems, the auditor may perform various procedures such as reviewing documentation, conducting interviews, and testing the systems' effectiveness.