Auditing Around the Computer

question 55

Multiple Choice

Auditing around the computer:

• A) considers only the non-IT controls in assessing control risk.
• B) uses the client's computer as an audit tool.
• C) uses computer programs to perform audit tasks in special circumstances.
• D) all of the above

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Definitions:

Honoring

The act of fulfilling or adhering to agreements, commitments, or payments.

Dishonoring

Dishonoring occurs when a promised payment, such as a check or electronic payment, is not completed due to insufficient funds or rejection by the bank.

Note Receivable

A written promise for a specified amount of money to be paid by a debtor at a certain future date.

Principal

The original sum of money borrowed in a loan or the initial amount of investment, excluding any interest or profits.