Skip to content

CMA Intermediate · Corporate Accounting and Auditing · Audit Risk, Internal Control, Internal Check and Internal Audit

An auditor of a manufacturing company is evaluating IT in the control system. Which one of the following is NOT stated by SA 315 as a general benefit of IT to internal control?

The statement that IT guarantees no fraud by senior management is not a benefit listed in SA 315. The standard lists consistent rule application, better information quality, more analysis, better monitoring, reduced circumvention risk and better segregation of duties, but it makes no such guarantee.

  1. AConsistently applying predefined business rules and performing complex calculations on large volumes of data
  2. BReducing the risk that controls will be circumvented
  3. CGuaranteeing that no fraud by senior management can occurCorrect
  4. DEnhancing the ability to achieve effective segregation of duties through security controls in applications, databases and operating systems

Explanation

SA 315 lists benefits including consistent application of business rules, better timeliness and accuracy, additional analysis, better monitoring, reduced circumvention risk and better segregation of duties. It does not claim IT guarantees prevention of fraud by senior management, so that option is the one not stated.

Did you get it right without looking?

One question tells you little. A timed set on Audit Risk, Internal Control, Internal Check and Internal Audit shows your real accuracy, how long you take and where you lose marks.

Practise Audit Risk, Internal Control, Internal Check and Internal AuditFree diagnostic mock

More Audit Risk, Internal Control, Internal Check and Internal Audit questions