Certified Information Systems Auditor (CISA) — Question 1185

Which of the following would be the GREATEST concern during a financial statement audit?

Answer options

• A. A backup has not been identified for key approvers.
• B. System capacity has not been tested.
• C. The procedures for generating key reports have not been approved.
• D. The financial management system is cloud based.

Correct answer: C

Explanation

The correct answer, C, highlights the lack of approval for procedures that generate key reports, which is critical for ensuring accuracy and reliability in financial reporting. Option A, while important, deals with backup plans rather than direct report generation. Option B concerns system capacity, which is less critical than ensuring proper audit trails and report accuracy. Option D discusses the system's cloud-based nature, which doesn't inherently indicate a concern during the audit itself.