Question

It is important that a client has appropriate procedures for which of the following regarding installation of a new IT system? Select all that apply.

1) Changing from an existing system to a new system
2) Ensuring that a new system includes embedded controls to maximize the risk of material misstatement
3) Training staff in using the new system
4) Selecting new IT systems

Answer 1

When installing a new IT system, it's important for a client to have procedures for changing systems, ensuring embedded controls to minimize risks, training staff, and selecting appropriate systems.

Step-by-step explanation:

It is essential for a client to have appropriate procedures in place when installing a new IT system. These procedures include:

1. Changing from an existing system to a new system, which requires a well-defined transition process to ensure data integrity and system functionality are maintained.
2. Ensuring that a new system has embedded controls to minimize the risk of material misstatement, rather than maximizing it as stated in the question, which seems to be a typo. Strong control mechanisms are critical for financial accuracy and data security.
3. Training staff in using the new system to ensure they are equipped with the necessary skills and knowledge to operate the new technology effectively.
4. Thoroughly analyzing and selecting new IT systems that will address the specific needs and goals of a business, which involves comparing various options and assessing their potential impact.

All the options are required.