All of the Following Are True Concerning Embedded Audit Modules

question 50

Multiple Choice

All of the following are true concerning embedded audit modules except:

• A)They provide for continuous auditing of application processing
• B)The auditor does not have to be involved in the development of these programs
• C)Once implemented, the system can capture information that is useful to the auditor on an ongoing basis
• D)With this approach, the application program incorporates subroutines for audit purposes

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Definitions:

Accounting Period

A specific period of time used for financial reporting, often a quarter or year, during which financial information is recorded and reported.

Debit

An entry recorded on the left side of an account ledger, representing an increase in assets or expenses or a decrease in liabilities, equity, or revenue.

Credit

An accounting entry that increases a liability or equity account or decreases an asset or expense account.

Balance Sheet Accounts

Accounts that reflect the assets, liabilities, and shareholders' equity of a company at a particular point in time.