The Results of a Generalized Audit Software Simulation of the Aging

question 13

Multiple Choice

The results of a generalized audit software simulation of the aging of accounts receivable revealed substantial differences in the aging contribution,even though grand totals reconciled.Which of the following should the IS auditor do first to resolve the discrepancy?

• A)Recreate the test,using different software.
• B)List a sample of actual data to verify the accuracy of the test program.
• C)Ignore the discrepancy because the grand totals reconcile and instruct the controller to correct the program.
• D)Create test transactions and run test data on both the production and simulation program.

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Definitions:

Revenue

The total amount of money received by a company for goods sold or services provided during a certain period.

Fixed Cost

Costs that do not change with the level of production or business activity, such as rent, salaries, and insurance.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing for more accurate budgeting in variable cost scenarios.

Tenant-Days

A metric in the real estate and hospitality industry indicating the total number of days that tenants or guests occupy a space.