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:

Statement Of Cash Flows

An accounting statement that illustrates the influence of changes in balance sheet accounts and earnings on the flow of cash and cash equivalents, categorized by operating, investing, and financing activities.

Inventory

The total amount of goods and materials held by a company in stock, ready for sale or production.

Fixed Assets

Long-term tangible assets used in the operation of a business and not expected to be converted to cash in the upcoming fiscal year.

Days' Sales In Inventory

An indicator that reflects the average number of days a company requires to convert its inventory into sales.