Identify Three Ways Audit Software Can Be Used by Audit

question 88

Essay

Identify three ways audit software can be used by audit firms to assist in the documentation and recording of the audit process:

Compute the sale proceeds of a bond including accrued interest and commission deductions.

Determine the number of days for which accrued interest is calculated in bond transactions.

Calculate the total amount paid for a bond purchase considering discount, commission, and accrued interest.

Understand the concept of current yield and how it can be contrasted among different bonds.

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Definitions:

Arbitration

A method of dispute resolution involving an impartial third party who hears both sides and makes a binding decision.

Litigation

The procedure of resolving conflicts or taking legal steps through the judiciary system.

Business Relationship

pertains to the connections and interactions between businesses or between a business and its clients, such as partnerships, contractual agreements, and networks.

Binding Arbitration Clause

A contract provision that requires the parties to resolve disputes through arbitration rather than through the court system.