Many Companies Design Their IT System So That All Documents

question 134

Multiple Choice

Many companies design their IT system so that all documents and reports can be retrieved from the system in readable form.Auditors can then compare the documents used to input the data into the system with reports generated from the system, without gaining any extensive knowledge of the computer system and does not require the evaluation of computer controls.This process is referred to as:

• A)Auditing through the system
• B)Auditing around the system
• C)Computer assisted audit techniques
• D)Auditing with the computer

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Definitions:

Intrinsic Value

The inherent worth of an asset, independent of its market price, often based on what is fundamentally valuable about the asset.

Media Of Exchange

Objects or instruments used to facilitate the sale, purchase, or trade of goods between parties.

Demand Deposits

Bank accounts from which money can be withdrawn at any time without any notice, such as checking accounts.

Short-Term Bonds

Debt securities with maturities typically less than five years, often used by investors seeking lower risk and more liquidity.