How can a program change affect financial reporting controls?
A system change can alter transaction processing, calculations, reports, interfaces, or approval workflows. If the change is not approved, tested, and migrated properly, the application may stop enforcing the control that management relies on.
Suppose a billing system update changes the tax calculation table for invoices. If no one tested the update, revenue and tax liabilities may be misstated. The audit issue is not just that IT skipped paperwork; the change may affect financial statement amounts.
- Related article:
cpa-itgc-dependency-controls-map - Related QB item:
qb-cpa-program-change-approval-impact
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