ICANManagement InformationInformation Systems in Business2022

Kano Steel Plc, a listed company, uses a cloud-based accounting system to prepare its financial statements in compliance with IFRS as adopted in Nigeria. The external auditors, applying ISA 315 (Revised 2019), are assessing IT general controls. Which of the following is an IT general control rather than an IT application control?

AAutomatic calculation of depreciation on property, plant and equipment
BSystem validation that prevents posting of journal entries without a valid cost centre code
CPeriodic review and update of user access rights to the financial reporting moduleCORRECT
DAutomated three-way matching of purchase orders, goods received notes and invoices
AI
Toaster Teacher
Why the answer is C, and why the others tempt you.
IT general controls (ITGCs) govern the overall IT environment and include access management, change management, and IT operations controls — they apply across all applications. Periodic review of user access rights is an ITGC. Options A, B and D are IT application controls because they are embedded within specific application processes (depreciation calculation, input validation, and procurement matching respectively) and directly prevent or detect errors in individual transactions.
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