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:

Injunction

A legal order issued by a court that directs an individual or entity to do or refrain from doing a specific action.

Contractual Duty

An obligation imposed by a contract that requires a party to act or refrain from acting in a certain way.

Liquidated Damage

An amount of money, agreed upon by parties in a contract, to be paid as compensation by one party to the other in the event of a breach of contract.

Approximation

The process of finding a value that is close enough to the right answer, usually within an acceptable margin of error.