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:

Implicit Memory

A type of long-term memory that is not consciously recalled, allowing individuals to perform tasks without conscious awareness of the learning process.

Visuo-Spatial Sketchpad

The visuo-spatial sketchpad is a component of working memory responsible for the temporary storage and manipulation of visual and spatial information.

Phonological Loop

A component of the working memory model responsible for processing and storing verbal and auditory information.

Episodic Memory

The retention of information about the where, when, and what of life’s happenings—that is, how individuals remember life’s episodes.