It is important for the auditor to understand both the general controls and the application controls a company has implemented.Which of the following statements is true about these controls?
A)Auditors do not link IT controls to audit objectives.
B)After identifying specific IT-based application controls that can be used to reduce control risk, auditors can reduce substantive testing.
C)General controls affect audit objectives in only one cycle.
D)The impact of general controls and application controls on audits does not vary depending on the level of complexity in the IT environment.

Question

Quizplus · Accepted Answer

After identifying specific IT-based application controls, auditors can rely on them to reduce control risk and therefore reduce the need for substantive testing. This not only saves time and resources but also increases the effectiveness and efficiency of the audit.

The other three statements are incorrect. 
A) Auditors do link IT controls to audit objectives, as IT controls are an integral part of the audit process. 
C) General controls can affect multiple cycles, not just one. 
D) The impact of general and application controls can vary depending on the complexity of the IT environment, as more complex IT systems may require more intensive and detailed controls.

It Is Important for the Auditor to Understand Both the General