When audit clients acquire new, more sophisticated IT systems,
A) The audit strategy will not be impacted as long as the duties of accounting personnel are primarily unchanged.
B) Auditors with advanced IT knowledge may need to be added to the audit team.
C) The design of internal controls will be considered ineffective until those new controls have been tested.
D) The timing of the auditor's procedures for reviewing interim financial statements will be accelerated.

Question

Quizplus · Accepted Answer

When audit clients acquire new, more sophisticated IT systems, auditors with advanced IT knowledge may need to be added to the audit team to properly assess the impact of the new system on the financial statements and internal controls. The other options are incorrect. The audit strategy may need to be adjusted based on the changes in the accounting personnel duties, the effectiveness of internal controls cannot be assumed to be ineffective without testing, and the timing of auditor's procedures will depend on various factors, not just the acquisition of new IT systems.

When Audit Clients Acquire New, More Sophisticated IT Systems