Page 166 - CITP Review

13.
a. Incorrect. Data analytics may be used to analyze journal entries and account balances.

b. Incorrect. Data analytics may be used query various attributes such as material
transaction or duplicates.
c. Incorrect. Data analytics may be used to analyze the aging of receivables/payables.
d. Correct. Data mapping is concerned with the pre-collection of data, not the analysis of
data.

Chapter 3

Knowledge check solutions

1.

a. Incorrect. The fact that the entity does not use COTS, and writes some of its own
applications means that it cannot be simple complexity.

b. Incorrect. There are no simple aspects to this case, regarding IT considerations.
c. Correct. Because the entity writes its own applications to relevant financial applications,
it is of sophisticated complexity.
d. Incorrect. Because there is no simple aspect of IT considerations in this case, it cannot
be moderate.

2.

a. Incorrect. Because the IT complexity involved is sophisticated, a professional IT auditor
is a necessary part of the audit team.

b. Incorrect. When application development is present, a flowchart is often helpful.
c. Incorrect. The controls described in the case to mitigate the IR in custom software do
reduce the audit risk (RMM) considerably.
d. Correct. Testing all IT projects is not necessary. The general process for evaluating
controls over application development is to take a sample of major projects and evaluate
them.

3.
a. Correct. The compensating controls for lack of SoD include the IT director review, and
the process of segregating the two on each project, especially in separating testing.
These compensating controls are enough to reduce the IR to no control deficiency.
b. Incorrect. See the explanation in a. This should not be evaluated as a control deficiency.
c. Incorrect. Because of the controls mentioned in the explanation in a., the deficiencies
should not be evaluated as significant.

d. Incorrect. There is no indication of material weakness in the case.

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