CISA exam prep: Understand the greatest risk of end-user computing (EUC) applications, particularly spreadsheets, and its impact on financial reporting accuracy.
Table of Contents
Question
Which of the following presents the GREATEST risk associated with end-user computing (EUC) applications over financial reporting?
A. Lack of portability for users
B. Calculation errors in spreadsheets
C. Inability to quickly modify and deploy a solution
D. Loss of time due to manual processes
Answer
B. Calculation errors in spreadsheets
Explanation
Spreadsheets, a common EUC application, are susceptible to human error during formula creation or data entry. Undetected calculation errors can significantly impact the accuracy of financial reports, leading to misstatements, inaccurate financial analysis, and flawed decision-making.
Other options analysis:
A. Lack of portability: While inconvenient, it does not directly impact financial reporting accuracy.
C. Inability to quickly modify and deploy: This impacts agility but not necessarily the accuracy of financial reporting.
D. Loss of time due to manual processes: While inefficient, it doesn’t inherently introduce errors into financial reporting.
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