ExpertHard1 markMultiple Choice
CPA · Question 73 · Area III: SOC Engagements
Which of the following is a 'Substantive Procedure' in an IT audit context?
Which of the following is a 'Substantive Procedure' in an IT audit context?
Answer options:
A.
Reviewing the password policy settings.
B.
Observing the backup process.
C.
Comparing a sample of database records to physical inventory counts to verify accuracy.
D.
Interviewing the CISO.
How to approach this question
Test of Controls = Does the machine work? Substantive Test = Is the product coming out of the machine good?
Full Answer
C.Comparing a sample of database records to physical inventory counts to verify accuracy.✓ Correct
C
Substantive procedures are designed to detect material misstatements at the assertion level. Verifying the actual data (inventory counts) against the system records is a substantive test of detail.
Common mistakes
Confusing Tests of Controls with Substantive Procedures.
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