There Is an Increasing Demand for Assurance About Computer Controls

question 60

Multiple Choice

There is an increasing demand for assurance about computer controls surrounding financial information transacted electronically and the security of the information related to the transaction.This is in large part due to

• A)the increasing presence of Internet sales in many businesses.
• B)the use of computer-assisted auditing tools.
• C)the large volume of transactions and information shared online and in real-time by companies.
• D)client's uncertainty about the proper functioning of their computer systems.

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Definitions:

Cash Receipts Journal

The special journal in which all cash receipts are recorded.

Compensating Balance

A minimum account balance that a company must maintain as part of an agreement with a lender, often to secure a loan or line of credit.

Cash Balance

The amount of money on hand and available in a company's bank accounts at any given time.

EFT

Electronic Funds Transfer, a system that moves money between accounts electronically.