IT Can Significantly Impact on an Organisation's Overall Control Risk

question 52

Multiple Choice

IT can significantly impact on an organisation's overall control risk. Which of the following risks would NOT be important from an auditing perspective?

• A) Use of unreliable information because of processing errors produced by the technology
• B) The inability to retrieve important information because of IT systems failure
• C) The potential for material misstatement
• D) None of the above, i.e., they are all important.

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Definitions:

Trademarks

Legal protections for logos, names, and other unique marks that distinguish goods or services and protect them from being used without permission.

Raw Materials

The basic, unprocessed resources required for manufacturing goods or providing services, such as metals, wood, oil, or agricultural products.

Outsourcing

Is the process of hiring outside firms to handle basic HRM functions, presumably more efficiently than the organization could.

Background Checks

The process of verifying an individual’s personal, financial, and/or criminal history, often done by employers to ensure the reliability of potential hires.