In an Electronic Data Interchange (EDI)environment,when the Auditor Compares the Terms

question 38

Multiple Choice

In an electronic data interchange (EDI) environment,when the auditor compares the terms of the trading partner agreement against the access privileges stated in the database authority table,the auditor is testing which audit objective?

• A)all EDI transactions are authorized
• B)unauthorized trading partners cannot gain access to database records
• C)authorized trading partners have access only to approved data
• D)a complete audit trail is maintained

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Definitions:

Operating Expenses

Costs incurred during the normal functioning of a business, excluding the cost of goods sold.

Support Departments

Units within an organization that provide essential services to other departments or divisions but do not directly produce revenue.

Profit Center

A decentralized unit in which the manager has the responsibility and the authority to make decisions that affect both costs and revenues (and thus profits).

Budget Performance Report

A report comparing the actual financial performance with the planned or budgeted amounts, often highlighting variances for analysis.