What Is the Auditor's Role in the Detection of Computer

question 26

Multiple Choice

What is the auditor's role in the detection of computer fraud?

• A) use computer-assisted audit techniques to make sure that the computer programs do not have any unauthorized processing
• B) use test data to make sure that the computer programs are functioning as described by the client
• C) investigate unusual relationships or patterns, conduct the audit properly, and report to management
• D) only detect fraud if it has been ongoing for a long period of time and leaves many different types of evidence

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Definitions:

Sales

The total amount of goods or services sold by a company, often considered a key indicator of a company's success and financial health.

Operating Activities

Operating activities involve the primary revenue-producing operations of a business, including the creation, production, and delivery of its goods and services.

Investing Activities

Transactions and events that involve the purchase or sale of long-term assets, investments, and other non-current assets.

Financing Activities

Activities that result in changes in the size and composition of the equity capital and borrowings of an entity, detailed in the cash flow statement.