Data Corporation Has Just Completely Computerised Its Billing and Accounts

question 55

Multiple Choice

Data Corporation has just completely computerised its billing and accounts receivable record- keeping. Your firm has recently acquired IDEA software and you want to make maximum use of the computer in your audit of Data Corporation. Which of the following audit techniques could NOT be performed using generalised audit software?

• A) Selecting a sample of accounts to be confirmed and printing confirmation requests
• B) Comparing data on separate files
• C) Resolving differences reported by customers on confirmation requests
• D) Examining records for quality, completeness, consistency and correctness

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Definitions:

Opportunity Cost

Opportunity cost refers to the value of the next best alternative foregone as the result of making a decision.

Corn

A cereal plant that yields large kernels set in rows on a cob, a staple food in many parts of the world.

Absolute Advantage

A situation where an individual or entity can produce more of a good or service with the same amount of resources compared to others.

Input Requirements

The set of resources, materials, and labor needed for the production of goods or services.