Auditors Are Now Faced with Examining Clients That Have Database

question 38

Essay

Auditors are now faced with examining clients that have database systems.
a.Describe a database system,including its major advantage.
b.Identify policies and procedures that may be established to provide control over that aspect of a database system.

---

Definitions:

Prepaid Asset

An asset on the balance sheet representing goods or services paid for in advance, which are to be consumed in future accounting periods.

Pre-Tax Book Income

The income of a business before taking into account any tax liabilities, reflecting the company's financial performance without the impact of tax expenses.

Taxable Income

The portion of an individual's or entity's income used to determine how much tax is owed to the government, after all deductions and exemptions are applied.

Pre-Tax Operating Loss

The loss a company incurs from its operations before accounting for taxes, indicating how well the core business is performing.