a. Briefly describe three strategies for testing internal controls when information technology is used for significant accounting processing.

b. Identify two strategies that might be used to support a low control risk assessment. Discuss the difference between the two strategies.

c. Discuss a third audit strategy that might be used to assess control risk at a high level. Explain why this strategy will not support a low control risk assessment.
Learning Check 11-8

 

What are the advantages and disadvantages of the computer-assisted audit technique known as parallel simulation?

 

Learning Check 11-9

 

a. What is the difference between the conventional test data approach and the integrated test facility approach?

 

b. In lieu of traditional testing, what approaches can be used in on-line entry/on-line processing systems?