Question

IT audit procedures typically include a combination of data accuracy tests where the data processed by computer applications are reviewed for correct dollar amounts or other numerical values. These procedures are referred to as:

A. Security controls
B. Processing controls
C. Input controls
D. Output controls

Answer 1

In an IT audit, data accuracy tests which review numerical values processed by computer applications are known as 'Processing controls'. These controls ensure data integrity and accurate processing within IT systems.

Step-by-step explanation:

The procedures to review data for correct dollar amounts or other numerical values processed by computer applications during an IT audit are referred to as B. Processing controls. These controls are critical to ensure that data processing by applications is both accurate and complete. They help in detecting errors in data input and processing, maintaining the integrity of data during transactions, and ensuring that outputs are reliable.

When auditors conduct IT audits, they look at a variety of controls within the IT environment. Processing controls are a specific category of internal controls that focus on the processing aspect of data. This can include checks on the processing itself, such as validations and reconciliations to make sure that the data being processed is handled correctly throughout the system.