IIA Exam IIA-CIA-Part2 Topic 9 Question 92 Discussion

Actual exam question for IIA's IIA-CIA-Part2 exam

Question #: 92
Topic #: 9

During audit engagement planning, an internal auditor is determining the best approach for leveraging computer-assisted audit techniques (CAATs). Which of the following approaches maximizes the use of CAATs and why?

ATracing, because it would enable the auditor to verify quickly that the record counts were properly included in the compilation.

BInspection, because it would enable the auditor to verify how management enters the data into the application for processing.

CTesting data, because it would enable the auditor to ensure that the application processes the transaction as described by management.

DReperformance, because it enables the auditor to verify that the application performed the calculation correctly.
Reperformance is a CAATs approach that involves independently executing the same procedures as the original process to verify the accuracy of the application's calculations. This approach maximizes the use of CAATs because it directly tests the functionality and reliability of the system by ensuring that the system processes transactions and calculations correctly, as intended by management.
IIA Reference:
IIA Standard 1220: Due Professional Care suggests that internal auditors should apply appropriate techniques, such as CAATs, to obtain sufficient evidence. Reperformance as a CAATs method is particularly effective in verifying the integrity of system calculations.
The Practice Guide on Using CAATs highlights that reperformance is one of the most powerful techniques for validating that a system operates as intended and that transactions are processed correctly.

Show Suggested Answer

Suggested Answer: D

by Audra at Oct 19, 2024, 07:44 AM

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Aleisha

24 days ago

Yep, reperformance is the way to go. I mean, who wants to rely on a system that can't even do basic arithmetic properly? Gotta keep those spreadsheets in check!

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Catrice

1 months ago

I agree with Gene. Reperformance is recommended by IIA Standard 1220 for verifying the integrity of system calculations.

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Gene

1 months ago

I think the best approach is reperformance because it directly tests the functionality and reliability of the system.

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2 months ago

Reperformance seems like the best approach here. It allows the auditor to directly verify the accuracy of the system's calculations, which is crucial for ensuring the integrity of the data.

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Buddy

20 days ago

D) Reperformance, because it enables the auditor to verify that the application performed the calculation correctly.

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Eugene

21 days ago

C) Testing data, because it would enable the auditor to ensure that the application processes the transaction as described by management.

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Gladys

26 days ago

B) Inspection, because it would enable the auditor to verify how management enters the data into the application for processing.

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Dante

1 months ago

A) Tracing, because it would enable the auditor to verify quickly that the record counts were properly included in the compilation.

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