ASA 315 Refers to the Benefits and Risks Related to Internal

question 80

Essay

ASA 315 refers to the benefits and risks related to internal controls present in an IT system.What are the implications for the auditor in conducting tests of controls and substantive tests?

Understand the concept of influence tactics and their outcomes (commitment, compliance, resistance).

Appreciate the importance of negotiation, conflict resolution, and understanding others’ goals in exercising power effectively.

Recognize the importance of personal development strategies within professional settings.

Distinct the concepts of reward power from coercive power and their respective impacts on organizational effectiveness.

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Definitions:

Purchase Money Security Interest

A security interest that arises when someone lends money to a consumer and then takes a security interest in the goods that the consumer buys.

Floating Lien

A security interest or claim against assets that are not fixed but rather change in quantity and value over time, such as inventory or accounts receivable.

Priority

The established order of importance or precedence, often used in contexts where resources are limited or decisions must be made based on urgency.

Equity of Redemption

A mortgagor’s right to pay off the mortgage in full, including interest.