C is corrent because when computer control procedures leave no visible evidence indicating the procedures have been performed, the auditor should test these controls by reviewing transactions submitted for processing and comparing them with the related output. The objective is to determine that no transactions tested with unacceptable conditions went unreported and without appropriate resolution. This procedure can be undertaken by submitting actual client live data or dummy transactions.
A is incorrect because corroborative inquiries involve gathering supportive documentation. However, within the computer system, there is no visible evidence or documentation for the procedures performed.
B is incorrect because the run manual consists of program documentation including the problem statement, system flow chart, operating instructions, record layouts, program flow charts, program listing, test data, and an approval and change sheet. Reviewing the run manual would be part of the review of the system’s controls and not a test of performance.
D is incorrect because observing the separation of functional responsibilities is less applicable to a computer system because frequently many previously separated functions are combined in a computer system. Thus, attempting to observe the separation of functional responsibilities would not test the internal controls because this separation does not exist.
|
