End-User Developed Application Financial Statement Concerns

D.

The correct answer is D. There is no control to ensure accuracy of the processed data.

Explanation:

An end-user developed application is a software application that is created by non-IT personnel, usually by the business unit, to automate a specific business process or function. In this case, the application generates financial statements. When reviewing an end-user developed application that generates financial statements, an IS auditor should pay attention to the following:

A. The application is not sufficiently supported by the IT department This finding may be of concern, but it is not the most critical one. While it is desirable to have IT support for an application, it is not a requirement, especially if the application is small and simple.

B. There is not adequate training in the use of the application This finding is important, but it is not the most critical one. Adequate training is necessary to ensure that the application is used correctly and efficiently, but it does not directly impact the accuracy of the financial statements.

C. There is no adequate user license for the application This finding is important, but it is not the most critical one. Adequate user licensing is necessary to ensure compliance with software vendor agreements and avoid legal issues, but it does not directly impact the accuracy of the financial statements.

D. There is no control to ensure accuracy of the processed data. This finding is the most critical one. Accuracy is paramount when generating financial statements. Without controls to ensure accuracy, the financial statements may contain errors or omissions, which could lead to incorrect decisions being made by stakeholders, including investors, creditors, and management. An IS auditor should verify that the application has appropriate controls, such as validation and verification checks, audit trails, and reconciliations, to ensure accuracy.

In conclusion, an IS auditor performing a review of an end-user developed application that generates financial statements should be most concerned if there is no control to ensure accuracy of the processed data.