Misstatements in the Financial Statement May Not Be Detected with the Increased

question 94

Multiple Choice

Misstatements in the financial statement may not be detected with the increased use of IT due to: I.the loss of a visible audit trail.
II) reduced human involvement.

• A)I only
• B)II only
• C)both I and II
• D)neither I or II

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Definitions:

Anticipated Growth Rate

The expected rate at which a company, asset, or economy is predicted to grow over a certain period of time.

Free Cash Flow

The amount of cash generated by a company after accounting for operating expenses and capital expenditures.

Market Capitalization Rate

The market-consensus estimate of the appropriate discount rate for a firm’s cash flows.

Corporate Tax Rate

The tax imposed on the net income of a corporation, varying by country and sometimes within jurisdictions of countries.