Answer the following from Chapter 7 of the textbook (write a one page response for each question): Discussion Question 27: Explain how an audit trail might get “lost” within a computerized system. Discussion Question 37: Explain why Benford's Law is useful to auditors in the detection of fraud. Discussion Question 41: Explain the necessity for performing substantive testing even for audit clients with strong internal controls and sophisticated IT systems.
Answer the following from Chapter 7 of the textbook (write a one page response for each question): Discussion Question 27: Explain how an audit trail might get “lost” within a computerized system. Discussion Question 37: Explain why Benford's Law is useful to auditors in the detection of fraud. Discussion Question 41: Explain the necessity for performing substantive testing even for audit clients with strong internal controls and sophisticated IT systems.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Answer the following from Chapter 7 of the textbook (write a one page response for each question):
- Discussion Question 27: Explain how an audit trail might get “lost” within a computerized system.
- Discussion Question 37: Explain why Benford's Law is useful to auditors in the detection of fraud.
- Discussion Question 41: Explain the necessity for performing substantive testing even for audit clients with strong internal controls and sophisticated IT systems.
Expert Solution
Step 1: Meaning of audit trail
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An audit trail is a chronological record of events and actions taken within a computerized system. It's essential for tracking and maintaining the integrity and security of data and operations within that system. It is a crucial component of information security and compliance, as it helps in tracking and monitoring user actions, system events, and data changes.
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