Companies with Non-Complex IT Environments Often Rely on Desktops and Networked

question 8

Multiple Choice

Companies with non-complex IT environments often rely on desktops and networked servers to perform accounting system functions.Which of the following is not an audit consideration in such an environment?

• A)Limited reliance on automated controls
• B)Unauthorized access to master files
• C)Vulnerability to viruses and other risks
• D)Excess reliance on automated controls

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Definitions:

Substitution Effect

The economic principle that as prices rise or incomes decrease, consumers replace more expensive items with less costly alternatives.

Price Decrease

A reduction in the cost of goods or services, typically resulting from factors such as increased supply, decreased demand, or external market conditions.

Labor Supply Curve

The Labor Supply Curve is a graphical representation showing the relationship between the quantities of labor that workers are willing and able to provide at different wage levels, typically sloping upwards from left to right.

Backward Bending

A labor supply curve that bends backward at higher wage rates, indicating that individuals may choose to work fewer hours as their income increases.