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:

Wage Rate

The fixed amount of compensation paid to employees for their labor, typically expressed as a rate per hour.

Derived Demand

Defines the demand for a good or service that results from the demand for another good or service.

Equilibrium Wage

The wage rate at which the quantity of labor supplied equals the quantity of labor demanded.

Labor Demand Curve

A graphical representation showing the relationship between the wage rate and the quantity of labor that employers are willing to hire.