(Strategies for Testing Internal Controls)
1. Briefly describe three strategies for testing internal controls when information technology is used for significant accounting processing.
2. What are the advantages and disadvantages of the computer-assisted audit technique known as parallel simulation?
3. What is the difference between the conventional test data approach and the integrated test facility approach?
4. List the steps involved in selecting and evaluating a nonstatistical or a statistical sample for tests of controls. Identify the professional judgments that must be made associated with each step.