Question

When would "auditing around the computer" be appropriate?

A. When significant controls over the computer system are adequate.
B. When significant controls over the computer system are not required.
C. It is never appropriate to audit around the computer.

Answer 1

Auditing around the computer is when auditors check the input data and output independently of the computer system itself, and it's appropriate when significant controls over the computer system are not required.

Step-by-step explanation:

When considering auditing around the computer, it would be appropriate when significant controls over the computer system are not required. This method is used when auditors review input data, process it independently, and compare the independent results to the program's output. Although this method may have been relevant in the past when computer systems were simpler and less integrated into business processes, today's complex information systems often require auditors to directly test system controls. Hence, while option B is technically correct, auditors usually prefer testing within the computer - examining the actual system processes, controls, and data.