Due to a Recent System Upgrade, an Audit Is Planned

question 308

Multiple Choice

Due to a recent system upgrade, an audit is planned to test the payroll process. Which of the following audit objectives would be most important to prevent fraud?

• A) Verify that amounts are correct.
• B) Verify that payments are on time.
• C) Verify that recipients are valid employees.
• D) Verify that benefits deductions are accurate.

Comprehend the process and implications of mental scanning and the role of imagery neurons in cognitive mapping.

Understand the concepts of product mix and product lines within a company.

Comprehend the comprehensive nature of a product including physical, service, and symbolic aspects.

Identify the stages of the product life cycle and how different products progress through these stages.

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Definitions:

Demand Uncertainty

Refers to the unpredictability of customer demand for a product or service, making it difficult for companies to accurately predict sales volumes.

Supply and Demand

A fundamental economic model describing the interaction between the availability of a product and the desire for that product by consumers.

Overstocking

The situation where a business holds more inventory than is demanded by the market, leading to unnecessary storage costs and potential wastage.

Understocking

The situation in which inventory levels are too low, leading to stockouts and potentially missed sales opportunities.