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CA Final · Advanced Auditing, Assurance and Professional Ethics · Materiality, Risk Assessment and Internal Control

Under SA 315, which of the following is a way in which IT generally benefits an entity's internal control?

IT generally benefits internal control by enhancing the ability to achieve effective segregation of duties through security controls in applications, databases and operating systems. SA 315 does not claim that IT removes the need for monitoring or eliminates every risk, only that it reduces the risk of circumvention.

  1. AIt eliminates the need to monitor controls
  2. BIt enhances the ability to achieve effective segregation of duties through security controls in applications, databases and operating systemsCorrect
  3. CIt makes the control environment effective without management involvement
  4. DIt removes the risk of unauthorised changes to data

Explanation

SA 315 lists enhanced segregation of duties through security controls in applications, databases and operating systems among the benefits of IT. It does not say that IT removes the need for monitoring or guarantees data integrity. It states that IT reduces the risk that controls will be circumvented, not that it removes that risk.

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