Exam CISA topic 1 question 105 discussion

should be C

Reconciliation is a comprehensive control that verifies the overall accuracy of the data entry. It ensures that the sum of the individual entries matches the total expected amount, thereby providing a strong assurance of accuracy. While the other options provide some level of control, they do not offer the same level of comprehensive assurance: A. Display back of project detail after entry: This control allows users to review entered data but relies on manual verification and may not catch all errors. C. Reasonableness checks for each cost type: These checks can identify unusual or unexpected values but may not catch all types of data entry errors and do not verify the accuracy of the total amounts. D. Validity checks, preventing entry of character data: These checks ensure that only numerical data is entered, but they do not verify the correctness or accuracy of the data itself.

It is a value spreadsheets, os course that the right amount is the most crucial aspect for this case. I don't agree with letter D. An caracter would be easily identified by many other means. Although is a good controls it is not the most important for data accuracy.

Answer: B while reasonableness checks can catch certain types of errors, they may not detect all inaccuracies. Additionally, they rely on predefined criteria for what constitutes a "reasonable" value, which may not always capture all legitimate transactions. In contrast, reconciling total amounts by project (Option B) provides a more comprehensive validation of data accuracy. It ensures that the overall totals entered into the job-costing system match the totals calculated in the spreadsheets, which serves as a robust check on the accuracy of the data as a whole.

Reasonableness checks focus on identifying data that falls outside the expected range for each cost type. This aligns with CISA's emphasis on preventive controls that catch errors at the source, before they are transferred to the job-costing system. By implementing reasonableness checks, the system can flag entries that seem too high or low compared to historical data or project benchmarks. This prompts the user to review and potentially correct the data before it gets integrated, improving data integrity from the start.

The auditor ensure validity by conducting rationality checks for each cost type.

The spreadsheet will be used as an independent control file to ensure data accuracy

D: Validity checks, preventing entry of character data Reconciliation of total amounts by project is indeed an important control, and it can help identify discrepancies and errors in data entry. It ensures that the total costs in the job-costing system match the calculated totals from the spreadsheets used for project cost estimates. So, while both "Reconciliation of total amounts by project" and "Validity checks, preventing entry of character data" are valuable controls, they serve slightly different purposes: - "Reconciliation of total amounts by project" focuses on detecting errors and discrepancies after data entry. - "Validity checks, preventing entry of character data" focuses on preventing incorrect data from being entered in the first place by ensuring the data meets certain criteria. In practice, a combination of these controls would provide robust data accuracy and integrity assurance.

B. Reconciliation of total amounts by project The best control to ensure that data is accurately entered into the job-costing system after being calculated in spreadsheets is to perform a reconciliation of total amounts by project (Option B). Reconciliation involves comparing the totals from the spreadsheet calculations with the totals entered into the job-costing system. This helps identify any discrepancies or errors between the two sets of data, ensuring that the data has been accurately transferred and entered. Reconciliation provides an effective way to catch data entry mistakes and maintain the integrity of the financial information in the system.

Reconciliation of total amounts by project: This control involves verifying the total cost estimate calculated in the spreadsheet against the total entered into the job-costing system. By reconciling the two amounts, any discrepancies can be identified and corrected. This control provides the best assurance of data accuracy.

The correct answer is B

Confirm is B. https://dumpsofficial.com/free-questions/CISA-questions.pdf

controls should be implemented earlier (as closed to introduction) in the process so the answear d is correct -preventive controls works better than detective ones

Reconcialiation alone can ensure accuracy of data keyed in .