When the Client Uses a Computer but the Auditor Chooses

question 80

Multiple Choice

When the client uses a computer but the auditor chooses to use only the non-IT segment of internal control to assess control risk, it is referred to as 'auditing around the computer'.Which one of the following conditions need NOT be present in order to audit around the computer?

• A) The source documents are available in a readable form and can be traced easily through the accounting system to output.
• B) User controls include comparison of computer-produced records with source documents.
• C) Computer programs must be available in English.
• D) The accounting software can display or print ledger balances and transaction details that allow the auditor to trace individual transactions through the accounting records.

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Definitions:

Original Medicare

A federal health insurance program in the United States for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease, consisting of Part A (hospital insurance) and Part B (medical insurance).

Approved Charges

The amounts pre-determined by insurance providers as the maximum they will pay for a covered service or procedure.

X12 837

A standard format for electronically transmitting healthcare claim information from healthcare providers to payers, such as insurance companies.

Electronic Claim

A request for payment for healthcare services that is submitted electronically to a health insurance provider.