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Use of Electronic Funds Transfers (Such as Electronic Data Interchange

question 1

Multiple Choice

Use of electronic funds transfers (such as electronic data interchange and online banking) has which of the following effects on the audit risk model?

Definitions:

Political Lag

The delay between a need for policy action being identified and the government implementing the response, often due to bureaucratic or political reasons.

Decision Lag

The time taken between identifying an economic issue and the implementation of policy to address it.

Progressive

In the context of taxation, it refers to a tax system where the tax rate increases as the taxable amount increases, often aimed at reducing income inequality.

National Debt

The total amount of money that a country's government has borrowed, through various means, and has yet to repay.