When a Client Changes the Type of Hardware or Software

question 94

True/False

When a client changes the type of hardware or software used or in other ways modifies its IT environment, the auditors need to test only the new system in order to determine the effectiveness of the controls.

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Definitions:

Average Sale Period

The average time it takes for a product to be sold after it's been produced or acquired by the business.

Balance Sheet

A fiscal summary that outlines a company's assets, liabilities, and shareholders' equity at a certain moment in time.

Sales On Account

Transactions where goods or services are sold on credit, with payment to be received at a later date.

Cost Of Goods Sold

Direct expenses incurred in the production of a company's goods, including the costs of labor and materials.