When the client changes the computer software:
A)no additional testing is needed by the auditor.
B)and application controls are effective, the auditor can easily identify when software changes are made.
C)and general controls are effective, the auditor can easily identify when software changes are made.
D)application and general controls can no longer by relied upon by the auditor.

Question

Quizplus · Accepted Answer

If general controls are effective, the auditor should be able to identify when software changes are made. However, if application controls are also effective, the auditor can not only identify software changes but also assess their impact on the effectiveness of internal control. Therefore, additional testing may be needed by the auditor depending on the effectiveness of general and application controls. Option A is incorrect because changes in software may affect the effectiveness of internal control which may require the auditor to perform additional testing. Option B is incorrect because the effectiveness of application controls does not allow the auditor to assess the impact of software changes on internal control. Option D is incorrect because software changes may affect the effectiveness of internal control, not the reliability of the controls themselves.

When the Client Changes the Computer Software