What is Information produced by the entity?
In short
Information produced by the entity is data and reports the client generates, such as system reports or schedules, that the auditor uses as audit evidence. The auditor must evaluate whether it is reliable enough for the purpose.
Key takeaways
- That means obtaining evidence about its accuracy and completeness, for example by testing the report's logic or the controls over it.
- Reports from systems with effective general controls are more reliable.
- It applies equally to analyses prepared with spreadsheets or other technology.
Where it's tested
AUD: Information Technology (IT) Controls in the Audit — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
An auditor finds that a company's automated three-way match control is well designed, but application programmers have unrestricted access to modify programs in the production environment. What is the effect on the auditor's ability to rely on the automated control?