Sample content Resources: Ch. 11 & 13 of Modern Auditing: Assurance Services and the Integrity of Financial Reporting. Prepare written answers to the following assignments from Modern Auditing: Assurance Services and the Integrity of Financial Reporting: • Ch. 11: Learning Checks 11-6, 11-8, & 11-9 • Ch. 13: Learning Check 13-8 11-6. a. Three techniques which the auditor may use while checking a system of internal controls designed to use information technology incorporate: 1. Evaluating control risk depending on user controls. 2. Organizing for a low control risk evaluation depending on application controls. 3. Organizing for a high control risk evaluation depending on general controls and manual follow-up. b. The auditor may analyze control risk as low depending on 2 of the 3 above methods, supposing that the proof demonstrates that the controls are correctly developed and used in operation. First the auditor may examine control risk as low determined by user controls, for example effective performance evaluations by management. Second, the auditor can easily examine control risk as low depending on effective computer application controls. This strategy also involved efficient manual follow-up of exclusions observed by application controls. c. The auditor may evaluate control risk as high depending on proof obtained regarding both computer controls and manual follow-up methods. The auditor might be able to develop ramifications regarding the efficient operation of application controls depending on evaluation of exception reports and queries of people who follow-up on exception reports. But, the auditor should execute direct assessments of application controls so as to evaluate control risk below a high level. 11-8. The advantages of parallel simulation include the following: • Since actual data are used, the auditor can confirm the dealings