ExpertHard1 markMultiple Choice
CPA · Question 03 · Area I: Information Systems
An auditor is evaluating the 'Processing Integrity' principle for a financial institution's loan origination system. The auditor discovers that the system automatically rejects loan applications with incomplete data fields but does not generate an error log for these rejections. Which specific processing integrity risk does this control deficiency primarily exacerbate?
An auditor is evaluating the 'Processing Integrity' principle for a financial institution's loan origination system. The auditor discovers that the system automatically rejects loan applications with incomplete data fields but does not generate an error log for these rejections. Which specific processing integrity risk does this control deficiency primarily exacerbate?
Answer options:
A.
Completeness
B.
Accuracy
C.
Timeliness
D.
Authorization
How to approach this question
Map the deficiency (missing records of rejections) to the processing integrity objective it fails (ensuring all valid transactions are processed).
Full Answer
A.Completeness✓ Correct
A
Completeness in processing integrity ensures that all valid transactions are processed and none are omitted. Failing to log rejections means the organization cannot verify if the rejection was valid or if a system error caused a valid application to be dropped.
Common mistakes
Confusing Accuracy (data value is wrong) with Completeness (data is missing).
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