Which of the Following Is a Correct Statement Regarding General

question 85

Multiple Choice

Which of the following is a correct statement regarding general controls?

• A)Auditors should evaluate the effectiveness of application controls before evaluating general controls.
• B)General controls have a pervasive effect on the effectiveness of application controls.
• C)Ineffective general controls have no impact on the potential for material misstatements across all system applications.
• D)General controls have no impact on audit testing.

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Definitions:

Zero Defects

A management philosophy aimed at eliminating defects in products or processes through continuous improvement and defect prevention measures.

Open System

A system that interacts with its environment by exchanging energy, materials, or information.

Internal Customers

Individuals or groups within an organization who rely on the support or services of another individual or department within the same organization.

Theory Y

A management assumption that employees are naturally motivated, seek responsibility, and can make thoughtful and beneficial contributions to the organization.