When testing manual or automated controls,
A) automated controls are always subject to random error or manipulation.
B) automated controls cannot be altered by making a change to the software application.
C) when there are effective general controls and automated application controls, the auditor will need to select a larger sample size of transactions to verify.
D) the extent of testing depends on whether it is a manual or automated control.

Question

Quizplus · Accepted Answer

The extent of testing for controls should not depend on whether it is a manual or automated control. Instead, it should be based on the auditor's assessment of the risks associated with the control and the effectiveness of the control in addressing those risks. Both manual and automated controls can be subject to error or manipulation, and both may require larger sample sizes for testing if there are effective general and application controls in place. It is important for the auditor to assess the risks associated with each control and tailor their testing approach accordingly.

When Testing Manual or Automated Controls