If a Client Uses an Image Processing System to Scan

question 45

True/False

If a client uses an image processing system to scan documents and original documents are not retained, the auditor will want to consider the implications for the timing of procedures related to material account balances and transaction cycles.

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Definitions:

Physical Substance

The tangible aspect of assets, implying that they have a real, palpable presence.

Return On Assets

ROA, also known as Return on Assets, quantifies the efficiency with which a company uses its assets to generate net income, serving as an indicator of managerial effectiveness.

Total Assets

The sum of all resources owned by a company, valued in monetary terms.

Return on Assets

A profitability ratio that indicates how efficiently a company uses its assets to generate profit, calculated by dividing net income by total assets.