CS Professional · Internal and Forensic Audit · Internal Audit of Specific Functions
An internal auditor wants to confirm that the production version of an accounting application is the same program version that was formally tested and approved by management. Which audit procedure is most suitable?
The most suitable procedure is comparing the production program with the approved tested version, supported by change records and version comparison. This gives direct evidence that no unauthorised changes were made. Manuals, interviews or recomputing depreciation do not verify program version integrity.
- AReviewing the user manual of the application
- BComparing the production program with the approved version, for example through code or version comparison and change recordsCorrect
- CInterviewing the finance head about satisfaction with the software
- DRecomputing depreciation for a sample of assets
Explanation
Only comparing the live program with the approved, tested version, supported by change management records, provides evidence of integrity of the version in use. A user manual or user satisfaction says nothing about version integrity, and recomputing depreciation tests a calculation, not program change control.
Did you get it right without looking?
One question tells you little. A timed set on Internal Audit of Specific Functions shows your real accuracy, how long you take and where you lose marks.
More Internal Audit of Specific Functions questions
- In auditing the loan portfolio of Gomti Finance Ltd, an internal auditor finds that interest on several term loans has not been serviced for…
- In an internal audit of the maintenance function at Godavari Steels Ltd, the auditor wants to assess whether preventive maintenance is effec…
- While testing purchases at Ganga Foods Pvt Ltd, an internal auditor notices many orders of ₹4,90,000 each to one vendor, just below the ₹5,0…
- At Narmada Steels Ltd, the internal auditor observes that slow-moving and obsolete items are carried in the stores at original cost, with no…
- While walking through the Pune plant of Sahyadri Auto Ltd., an internal auditor notices three CNC machines in use that cannot be found in th…
- Which internal audit procedure best verifies that the cost of a newly capitalised building at Himalaya Foods Ltd. is properly stated?