Information Systems Audits Focus on

question 82

Multiple Choice

Information systems audits focus on

• A)how well information systems align with business strategies.
• B)deficiencies in information systems reporting.
• C)the information resources used to collect,retrieve,store,and process information.
• D)financial and account records.
• E)hardware and software.

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Definitions:

Selling and Administrative Expenses

Costs associated with the daily operations of a business that are not directly linked to producing the product or service but are necessary for selling and managing the business.

Plowback Ratio

A financial metric indicating the proportion of earnings a company decides to retain for reinvestment, rather than distributing as dividends.

Sustainable Growth Rate

The maximum rate at which a company can grow using its generated profits without resorting to external financing.

Capital Intensity Ratio

A metric that measures the amount of capital needed per unit of output, indicating the extent to which a firm or economy relies on capital to produce goods and services.