Question 1

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?

Accepted Answer

Map the deficiency (missing records of rejections) to the processing integrity objective it fails (ensuring all valid transactions are processed).

Question 2

What mistakes do candidates make on this CPA question?

Accepted Answer

Confusing Accuracy (data value is wrong) with Completeness (data is missing).

How to approach this question

Full Answer

Common mistakes

Practice the full CPA ISC Practice Exam 3

More questions from this exam