Use of Electronic Funds Transfers (Such as Electronic Data Interchange

question 63

Multiple Choice

Use of electronic funds transfers (such as electronic data interchange and online banking) has which of the following effects on the audit risk model?

• A) decreases control risks associated with cash
• B) increases control risks associated with cash
• C) decreases inherent risks associated with cash
• D) increases inherent risks associated with cash

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Definitions:

Checking Account

An account at a bank that allows a customer to deposit money and make withdrawals from the funds on deposit using a paper check or electronic transfer.

Flat Rate

A pricing strategy where a single fixed fee is charged for a service, regardless of usage or time.

Printing Company

A business specializing in producing physical copies of documents, photographs, and other printed materials.

Résumé

A document summarizing a job seeker's work experience, education, skills, and accomplishments.