During the implementation of a new system, an IS auditor must assess whether certain automated calculations comply with the regulatory requirements. Which of the following is the BEST way to obtain this assurance?
During the implementation of a new system, an IS auditor must assess whether certain automated calculations comply with the regulatory requirements. Which of the following is the BEST way to obtain this assurance?
Reviewing the source code related to the calculation is the best approach to assess whether automated calculations comply with regulatory requirements. This method allows the IS auditor to thoroughly understand the logic and formulas used in the calculations, ensuring they match the regulatory standards. It also helps identify any potential errors or issues in the code that might affect compliance. While re-performing the calculation with audit software can verify the correctness of the results, it doesn't provide assurance that the calculations are performed according to regulatory requirements.
Is B : By reviewing the source code, the auditor can gain an understanding of how the calculation is performed, and can verify that the calculation logic and formula comply with the relevant regulatory requirements. This approach also enables the auditor to identify any potential issues or errors in the calculation logic or formula and to recommend appropriate corrective actions. Re-performing the calculation with audit software may also provide assurance, but it may not necessarily verify compliance with regulatory requirements. Audit software typically verifies data accuracy, completeness, and consistency. It may not necessarily be designed to verify compliance with regulatory requirements.
A. Re-perform the calculation with audit software.
Reperformance
By re-running calculations with audit software, you can see the actual results and directly verify that the system is functioning correctly. This provides objective evidence of compliance with regulatory requirements. While reviewing source code is important, correct code does not guarantee that the actual calculations are accurate.
A is correct.