One of the Reasons That the Auditor Considers the Type

question 104

Multiple Choice

One of the reasons that the auditor considers the type of information system and its functions is to

• A)assess whether hardware functioning affects applications.
• B)evaluate design effectiveness of internal controls.
• C)complete risk assessment by audit assertion for cycles.
• D)assess whether programmed controls can be relied upon.

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Definitions:

Net Income

The total profit of a company after all revenues and gains are added together and all expenses and losses are subtracted.

Profit Margin

A financial ratio that shows the percentage of sales revenue that remains as profit after all costs and expenses are deducted.

Net Income

The amount of money remaining after all operating expenses, taxes, and costs have been subtracted from total revenues.

Sales

Sales refer to the revenue earned from selling goods or services over a period of time.