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

Under SA 315, which of the following is a circumstance in which manual elements of internal control may be more suitable than automated elements?

Manual controls are more suitable for large, unusual or non-recurring transactions, because these need judgment and discretion. High-volume recurring work, complex calculations and fully designable control activities are better handled by automated controls, as SA 315 explains.

  1. AProcessing a high volume of recurring sales invoices
  2. BLarge, unusual or non-recurring transactions that require judgment and discretionCorrect
  3. CPerforming complex calculations on large volumes of data
  4. DControl activities whose specific method can be fully designed and automated

Explanation

SA 315 states that manual elements may be more suitable where judgment and discretion are required, such as large, unusual or non-recurring transactions. The other options describe high-volume, recurring or fully designable activities, where automated controls are better suited.

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