E3 Control, evidence, automated tools and reporting

Which of these is a general IT control?

• 1 A calculation of tax
• 2 Controls over access and change management
• 3 A purchase order approval
• 4 A check that an invoice has a valid customer code

Which method of documenting a system shows the whole flow clearly but takes time to prepare?

• 1 A flowchart
• 2 Narrative notes
• 3 A questionnaire
• 4 A bank statement

What should a covering letter on control deficiencies include?

• 1 The auditor's personal views on staff
• 2 The deficiency, its potential effect and a recommendation
• 3 A new opinion
• 4 Only the audit fee

What is test data?

• 1 Dummy transactions processed through a system to test its controls
• 2 A sample of employees
• 3 A summary of the audit plan
• 4 A real customer list

Which statement about data analytics in audit is correct?

• 1 It can test whole populations but needs skills and reliable data
• 2 It guarantees no fraud
• 3 It is always cheaper
• 4 It removes the need for judgement

Material uncertainty about going concern is properly disclosed. How is it reported?

• 1 In a separate section on material uncertainty, with an unmodified opinion
• 2 As an adverse opinion
• 3 As a disclaimer
• 4 It is not reported

Should the auditor's report refer to the work of an expert used by the auditor?

• 1 Only if the expert asks
• 2 Generally not, because the auditor is solely responsible for the opinion
• 3 Only for small entities
• 4 Always

Other information in the annual report, including sustainability information, is inconsistent with what the auditor knows. What happens if management does not correct it?

• 1 Nothing
• 2 The auditor corrects it
• 3 The audit opinion is withdrawn automatically
• 4 The auditor reports it in the other information section