Assessing the risks associated with information technology Shane Woodrow is getting to know his…

Assessing the risks associated with information technology

Shane Woodrow is getting to know his new client Clarrie Potters, a large discount electrical retailer. Shane discovers that toward the end of last year, Clarrie Potters installed a new IT system for inventory control. The system was not operating prior to the end of the last financial year so its testing was not included in the previous audit. The new system was custom-built for Clarrie Potters by a Chicago-based software company by modifying another system it had designed for a furniture manufacturer and retailer.

Required

Evaluate the audit risks associated with the installation of the new inventory IT system at Clarrie Potters.

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