When Testing Informational Technology (IT) Application Controls in Payroll, the Auditor

question 4

Multiple Choice

When testing informational technology (IT) application controls in payroll, the auditor may do any of the following, EXCEPT _______.

• A)test important manual controls by reperforming the controls
• B)use test data and determine whether expected results appear in financial statements
• C)test the appropriateness of manual follow-up of exceptions
• D)All of the answer choices are correct.

Appreciate the significance of agency law for business operations and contracts.

Distinguish the concept of authority and its different forms in an agency relationship.

Understand the role and effects of geometric tolerancing in technical drawings.

Recognize the geometric characteristic symbols and their meanings.

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Definitions:

Percentage Return

The profit or deficit achieved on an investment over a designated duration, measured as a percentage of the investment’s initial value.

Bond

A fixed income investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period at a variable or fixed interest rate.

Capital Gains Yield

The change in the price of a security or investment over a specified period, excluding dividends, expressed as a percentage of the investment's initial price.

Total Return

The overall return on an investment over a specific time period, including both capital gains and dividends or interest, expressed as a percentage of the investment's initial cost.