Discuss the three types of controls auditors can perform to determine that programs are free from material errors
Reconcile the source code. Each application's permanent file should contain the current program listing and listings of all changes made to the application. These documents describe the application's maintenance history in detail. The nature of the program change should be clearly stated on the authorization document. The auditor should select a sample of applications and reconcile each program change with the appropriate documents.
Review the tests results. Every program change should be thoroughly tested before being implemented. Test procedures should be properly documented as to test objective, test data and processing results. The auditor should review this record for each significant program change to establish that testing was sufficiently rigorous to identify any errors.
Retest the program. The auditor can retest the application to confirm its integrity.
You might also like to view...
Accounts receivable usually are factored
a. with recourse on a notification basis. b. with recourse on a no-notification basis. c. without recourse on a notification basis. d. without recourse on a no-notification basis.
As a general rule, the optimal capital structure is the one that:
A. maximizes both the firm's expected EPS and its stock price. B. minimizes the interest rate on its debt and maximizes its expected earnings per share. C. minimizes its required rate on equity and maximizes its stock price. D. maximizes its stock price and minimizes its weighted average cost of capital. E. minimizes its expected earnings per share and maximizes its weighted average cost of capital.
According to the ________, while advertising, sales and promotions pour profits into your company, there will always be some customer defection, which has the potential to grow larger.
A. Iceberg principle of relationships B. 80/20 principle C. Echo principle of marketing D. Service paradigm shift E. Bucket theory of marketing
C-charts are based on the _____ probability distribution
a. normal b. binomial c. Poisson d. exponential