What are the two approaches of CAATs in auditing systems? What are the differences between them?
What will be an ideal response?
The two approaches are auditing around the computer (the black-box approach) auditing through the computer (the white-box approach).
Using the black-box approach, auditors do not need to gain detailed knowledge of the systems' internal logic. The system will not be interrupted for auditing purposes. The approach applies when the automated systems applications are relatively simple. Using the white-box approach requires auditors to understand the internal logic of the system/application being tested. Auditors need to create test cases to verify specific logic and controls in a system. Auditing through the computer approach embraces a variety of techniques such as test data technique, parallel simulation. The white-box approach is used when the automated systems applications are complicated.
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Process controls are controls over the logic of the application
Indicate whether the statement is true or false
Barb is trying to take control of her time by using an online time tracking system that tracks her time spent on tasks and projects. She heard that if you do something for seven weeks it becomes a habit. The activity in our brain that decides whether a behavior should be repeated and stored is ______.
a. a habit b. a habit loop c. self-leadership habit d. a compulsion in development
Fealty Credit Corporation asks its employees to evaluate their actions and get on the ethical business decision-making "bandwagon." Guidelines for judging individual actions include all of the following except
A. an individual's conscience. B. business rules and procedures. C. loopholes in the law or company policies. D. promises to others.
Finance theory suggests that the current market value of a bond is based upon which of the
following? A) the future value of interest paid on a bond B) the sum total of principal and interest paid on a bond C) the present value of a bond's par value plus the future value of the bond's present value D) the sum of the present value of the bond's interest payments and the present value of the principal