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When evaluating an "Information Produced by the Entity" (IPE) report used as audit evidence in an automated environment, the auditor should NOT:
ATest the accuracy of the data feeding the report
BTreat the report as inherently reliable without further testing
CTest the completeness of the underlying query/parameter
DVerify the report's ownership and source system
Answer & Solution
Correct answer: C. Test the completeness of the underlying query/parameter
1. SA 500 requires the auditor to evaluate accuracy and completeness of IPE before using it as evidence.
2. Treating an IPE as inherently reliable bypasses the SA requirement.
3. Query parameters, source data, and ownership are all proper test attributes.
_Source: ICAI BoS CA Final Paper 3, Ch 4 "Special Aspects of Auditing in an Automated Environment"_
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