Final answer:
The "auditing around the computer" method is used when controls over the computer system are non-existent, allowing the auditor to focus on the inputs and outputs without relying on the computer's internal processing. The correct answer is B) When controls over the computer system are non-existent.
Step-by-step explanation:
"Auditing around the computer" refers to an audit approach where an auditor focuses on the inputs and outputs of a computer system, rather than on the processing of data within the system itself. This technique might be appropriate when the auditor perceives that controls over the computer system are non-existent or ineffective, and therefore chooses not to rely on the system's internal controls. Instead, the auditor inspects the input data to ensure it is accurate and complete, and verifies the outputs by reconciling them with the input and other available data, effectively bypassing the computer processes.
To answer the question directly, the most appropriate scenario for using the "auditing around the computer" technique would be B) When controls over the computer system are non-existent. This approach is generally considered outdated given the complexity and integration of modern information systems in business processes, where relying solely on input and output may not be sufficient to ensure accuracy and integrity of the entire system.