ExpertHard1 markMultiple Choice
CPA · Question 65 · Area III: SOC Engagements
An auditor is testing the 'Accuracy' of a report generated by an IT system. They trace a sample of items from the report back to the source documents (invoices). This test primarily provides evidence for:
An auditor is testing the 'Accuracy' of a report generated by an IT system. They trace a sample of items from the report back to the source documents (invoices). This test primarily provides evidence for:
Answer options:
A.
Completeness
B.
Authorization
C.
Existence / Validity
D.
Timeliness
How to approach this question
Direction of testing matters! Source -> Report = Completeness (did everything get in?). Report -> Source = Existence (is this thing real?).
Full Answer
C.Existence / Validity✓ Correct
C
Tracing from the output (report) back to the input (source documents) verifies that the data in the report represents real, valid transactions (Existence/Validity). It checks for overstatement.
Common mistakes
Confusing Completeness (Source to Report) with Existence (Report to Source).
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