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:

Real Estate

Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water.

Implicit Cost

Costs that represent the loss of potential income from using resources for one purpose instead of their next best alternative use.

Capital

Financial assets or physical goods that have value and are used in the production of other goods and services, such as machinery, buildings, or money.

Capital

Resources such as machinery, buildings, and equipment used in the production of goods and services.