Audit challenges in IT environments: which factor most contributes to auditors failing to detect computer-related frauds and crimes during engagements?

Introduction / Context:
Auditing has evolved to include assessments of information systems, application controls, and data integrity. Computer frauds exploit weaknesses in access control, program changes, interfaces, and logs. When auditors lack sufficient IT knowledge, they may not design procedures that reveal such schemes, allowing fraud to go undetected despite conventional substantive testing.

Given Data / Assumptions:

• Computer crimes often involve automated processes, concealed logs, or programmatic manipulations.
• Detection requires understanding systems, privileges, and control design.
• Engagement time and scope are finite; auditors prioritize risks they understand.

Concept / Approach:
The most direct contributor to missed detection is inadequate IT literacy among auditors. Without skills in access management, change management, and data analytics, auditors may overlook red flags in configurations or logs. While costs and client sensitivities exist, they are secondary; many detection techniques are cost-effective when applied by knowledgeable practitioners using computer-assisted audit tools (CAATs).

Step-by-Step Solution:

Verification / Alternative check:
Professional standards encourage including IT specialists on audits; organizations with IT-audit capacity show higher detection rates of control deficiencies and anomalies.

Why Other Options Are Wrong:

• Prohibitively expensive procedures: Many analytics and control tests are affordable.
• Client concern about publicity: May affect disclosure, not detection.
• Small average take: Empirically untrue in many cases; size varies widely.
• None: Incorrect since lack of IT knowledge is a recognized factor.

Common Pitfalls:
Relying solely on substantive tests; ignoring IT general controls; not using data analytics to profile transactions and users.

Final Answer:
the auditor's lack of knowledge in computer technology