Auditing Standards Address the Importance of Understanding Both the Automated

question 24

Multiple Choice

Auditing standards address the importance of understanding both the automated and manual procedures that make up an organization's internal controls and consider how misstatements may occur, including all of the following, except:

• A)How transactions are entered into the computer
• B)How financial statement are printed from the computer
• C)How nonstandard journal entries and adjusting entries are initiated, recorded, and processed
• D)How standard journal entries are initiated, recorded, and processed

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Definitions:

Deferential Consent

Agreement or consent given with respect or submission to someone's judgment or authority.

United States

A country located primarily in North America, consisting of 50 states and a federal district.

Early Neutral Case Evaluation

A process in which a neutral third party assesses the strengths and weaknesses of each side's arguments early in a legal case, to facilitate a faster, cost-effective resolution.

Federal Rules

A set of regulations established at the national level that govern the procedures in federal courts and agencies.