PrepAway - Latest Free Exam Questions & Answers

This is an example of:

An IS auditor is reviewing access to an application to determine whether the 10 most recent “new
user” forms were correctly authorized. This is an example of:

PrepAway - Latest Free Exam Questions & Answers

A.
variable sampling.

B.
substantive testing.

C.
compliance testing.

D.
stop-or-go sampling.

Explanation:

Compliance testing determines whether controls are being applied in compliance with policy. This
includes tests to determine whether new accounts were appropriately authorized. Variable
sampling is used to estimate numerical values, such as dollar values. Substantive testing
substantiates the integrity of actual processing, such as balances on financial statements. The
development of substantive tests is often dependent on the outcome of compliance tests. If
compliance tests indicate that there are adequate internal controls, then substantive tests can be
minimized. Stop-or-go sampling allows a test to be stopped as early as possible and is not
appropriate for checking whether procedures have been followed.


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