Strategies for Testing Internal Controls and Risk

1a. Briefly describe three strategies for testing internal controls when information technology is used for significant accounting processing.

b. Identify two strategies that might be used to support a low control risk assessment. Discuss the difference between the two strategies.

c. Discuss a third audit strategy that might be used to assess control risk at a high level. Explain why this strategy will not support a low control risk assessment.

2. What are the advantages and disadvantages of the computer-assisted audit technique known as parallel simulation?

3 a. What is the difference between the conventional test data approach and the integrated test facility approach?

b. In lieu of traditional testing, what approaches can be used in on-line entry/on-line processing systems?

Solution Summary

The response addresses the queries posted in 1184 words with references.