Which of the Following Strategies Will a CPA Most Likely

question 32

Multiple Choice

Which of the following strategies will a CPA most likely consider in auditing an entity that processes most of its financial data only in electronic form,such as a paperless system?

• A)Continuous monitoring and analysis of transaction processing with an embedded audit module.
• B)Increased reliance on internal control activities that emphasize the segregation of duties.
• C)Verification of encrypted digital certificates used to monitor the authorization of transactions.
• D)Extensive testing of firewall boundaries that restrict the recording of outside network traffic.

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Definitions:

Colour Vision

The ability of the eye to distinguish objects based on the wavelengths of the light they reflect, emit, or transmit.

Estimate

A rough calculation or judgement of the value, number, quantity, or extent of something.

Thirsty

The sensation or condition of needing or desiring to drink fluids, typically as a physiological response to dehydration.

Sensory Adaption

The process by which sensory receptors change their sensitivity to the stimulus, often diminishing in response to a constant stimulus.