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.

---

Definitions:

Equivalent Units

A concept in cost accounting used to apportion costs to partially completed goods, calculated by considering the work done on them as equivalent to a certain number of fully completed units.

Materials Entered

This term refers to the recording or entry of raw materials into the production process or inventory system.

Units Started

The number of items or products that a manufacturing process has begun producing during a specific period.

Ending Work

The value of work that remains incomplete at the end of an accounting period, often referred to in calculating work in process.