An Auditor Who Is Testing IT Controls in a Payroll

question 35

Multiple Choice

An auditor who is testing IT controls in a payroll system would most likely use test data that contain conditions such as:

• A)time tickets with invalid job numbers.
• B)overtime not approved by supervisors.
• C)deductions not authorized by employees.
• D)payroll checks with unauthorized signatures.

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Definitions:

Accounting Policies

Specific convictions, understructures, modes, prescriptions, and regimens enacted by an entity for the generation and proclamation of financial analyses.

Market Efficiency

The concept that all available information is fully reflected in securities' prices, making it impossible to consistently achieve higher returns without taking on additional risk.

Abnormal Returns

Returns on a security that exceed what is predicted by market models, often attributed to unforeseen events or information.

Publicly Available Information

Information that is accessible to the general public, including but not limited to financial reports, press releases, and government documents.