The Existence of Advanced Automated Systems Affects the Audit Process

question 32

Multiple Choice

The existence of advanced automated systems affects the audit process.Which of the following characteristics is an indicator of the presence of an advanced automated information system?

• A)use of data communications (such as the Internet)to transfer transaction data
• B)use of packaged software to process sales both locally and across Canada
• C)use of customer relationship management systems to manage sales information
• D)numerically-controlled equipment used in the manufacturing process

Utilize Goal Seek for conducting what-if analysis.

Generate various reports (Answer, Sensitivity, Scenario Summary) to summarize solutions and analyses.

Recognize features and functionalities of Excel for creating, editing, and evaluating scenarios.

Understand the process of activating and using add-ins like Solver.

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Definitions:

Fixed-growth Rate

A constant percentage rate at which a variable, such as an economy or a population, grows over a specified period of time.

Monetary Policy

A strategy implemented by a country's central bank to control the money supply, often targeting inflation or interest rates to promote economic stability and growth.

Phillips Curve Relationship

This relationship indicates an inverse correlation between unemployment rates and inflation, suggesting that lower unemployment leads to higher inflation and vice versa.

Economists

Professionals who study the production, distribution, and consumption of goods and services, often analyzing economic issues and trends.