IPA IP 2023 Question 52

Checking that transactions are processed without impropriety or errors up to the financial report — that is the objective of an accounting audit.

An accounting audit examines whether the financial statements correctly present the company's financial position and results. To give that opinion, the auditor follows everyday transactions from where they occur, through recording and aggregation, into the financial report, checking that nothing was falsified or mistaken on the way.

Answer (d)

Why not others:

• •(a) — checking that the risks of the accounting system and other IT are controlled and IT governance is implemented is a systems audit; its object is IT, even when the system is an accounting one
• •(b) — checking information security risk management, including how the accounting department's PCs are used, is an information security audit
• •(c) — checking that work, including accounting work, is carried out rationally and efficiently according to policy is a business operations audit

Key rule: Name an audit by its object, not by the department involved: financial reports for the accounting audit, IT for the systems audit, information assets for the security audit, the running of the work for the operations audit.

System Audit · AI-written, may contain errors