ITPEC IP October 2019 Question 64
When an audit that is performed by an auditor is divided into an accounting audit, a business operations audit, a systems audit, and an information security audit, which of the following is the most appropriate description of the business operations audit?
Explanation
Whether the directors perform their duties in accordance with laws and the articles of incorporation — that is what a business operations audit examines.
The four audits differ by what is examined:
- •Accounting audit — whether the financial statements correctly present the financial status and business results
- •Business operations audit — whether the directors' execution of duties, the running of the business itself, complies with laws and the articles of incorporation (in Japan, the duty of the corporate auditors under the Companies Act)
- •Systems audit — whether information systems are inspected and evaluated as a whole and IT is used effectively and efficiently
- •Information security audit — whether safety measures for information assets are managed and operated effectively
Answer (d)
Why not others:
- •(a) — checking that the financial status and results are accurately written in the financial statements is the accounting audit
- •(b) — checking the management and operation of safety measures for information assets is the information security audit
- •(c) — comprehensively evaluating the information system and the effective, efficient use of IT is the systems audit
Key rule: Name an audit by its object: financial statements for the accounting audit, the directors' conduct of business for the business operations audit, IT use for the systems audit, protection of information assets for the information security audit.
System Audit · AI-written, may contain errors
This question comes from an official ITPEC past paper. ITPEC Practice is an independent study tool and is not affiliated with ITPEC. See the official IP past-paper collection or Report an issue.