In Which of the Following Situations Would an Auditor Most

Multiple Choice

In which of the following situations would an auditor most likely use a strategy of reliance on internal control?

A) The systems analyst reviews output and controls the distribution of output from the IT department.
B) The entity has been slow to update its IT system to reflect changes in billing practices.
C) No paper trail is generated, as the entity receives sales orders, bills customers and receives payment based only on information generated from IT.
D) The auditor has been unable to determine whether all changes to a client's IT were properly authorised.