Mastering the Essential Steps of IT Audit
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Questions and Answers

Which step in the IT audit process involves conducting preliminary arrangements with the client and including all arrangements in the engagement letter?

  • Substantive Testing
  • Issuance of Audit Report
  • Test of Controls
  • Audit Planning (correct)

    • What is the purpose of reviewing an organization's policies, procedures, and structure during the Audit Planning step?

  • To perform substantive testing
  • To issue an audit report
  • To develop an audit plan (correct)
  • To assess control risk

    • What is the maximum control risk?

  • The greatest probability that a material misstatement will be prevented or detected by the entity's internal control structure
  • The probability that a material misstatement will not be prevented or detected by the entity's internal control structure (correct)
  • The probability that a material misstatement will be prevented or detected by the entity's internal control structure
  • The lowest probability that a material misstatement will be prevented or detected by the entity's internal control structure

    • Which step in the IT audit process involves assessing materiality, acceptable audit risk, inherent risk, and control risk?

    <p>Issuance of Audit Report (A)</p> Signup and view all the answers

    What is the purpose of the Test of Controls and Substantive Testing step in the IT audit process?

    <p>To assess control risk (B)</p> Signup and view all the answers

    True or false: The Test of Controls and Substantive Testing step is conducted before the Audit Planning step in the IT audit process?

    <p>False (B)</p> Signup and view all the answers

    True or false: The maximum control risk refers to the highest level at which control risk can be assessed for all assertions in the IT audit process?

    <p>True (A)</p> Signup and view all the answers

    True or false: In the IT audit process, the auditor may decide to assess control risk at the maximum level for all assertions?

    <p>False (B)</p> Signup and view all the answers

    True or false: Assessments of materiality, acceptable audit risk, inherent risk, and control risk are all part of the development of the audit plan and audit program tools in the IT audit process?

    <p>True (A)</p> Signup and view all the answers

    True or false: Reviewing an organization's policies, procedures, and structure is only part of the Management Control assessment in the IT audit process?

    <p>False (B)</p> Signup and view all the answers

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