Prior to SOX, external auditors were required to be familiar with the client organization's internal controls, but not test them. Explain.
What will be an ideal response?
Auditors had the option of not relying on internal controls in the conduct of an audit and therefore did not need to test them. Instead auditors could focus primarily of substantive tests. Under SOX, management is required to make specific assertions regarding the effectiveness of internal controls. To attest to the validity of these assertions, auditors are required to test the controls.
PTS: 1
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Algorithm analysis should be independent of all of the following EXCEPT ______.
a) the programming style used in the implementation of the algorithm b) the computer used to run a program which implements an algorithm c) the number of significant operations in an algorithm d) the test data used to test a program which implements an algorithm
Which of these statements best defines scope?
a) Scope refers to the classes that have access to a variable. b) Scope determines whether a variable’s value can be altered. c) Scoping allows the programmer to use a class without using its fully qualified name. d) Scope is the portion of a program that can refer to an entity by its simple name.