In IT Systems, If General Controls Are Effective, It Increases

question 83

True/False

In IT systems, if general controls are effective, it increases the auditor's ability to rely on application controls to reduce control risk.

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Definitions:

Average Cost Method

An inventory costing method where the cost of goods sold and ending inventory is determined based on the average cost of all similar items in inventory.

Ending Inventory

The aggregate worth of a corporation's goods, raw materials, and both completed and in-progress items that remain unsold at the conclusion of a financial period.

Brown Bears

A species of bear noted for its varying sizes and colors, found in parts of North America, Europe, and Asia.

LIFO Method

An inventory valuation method that assumes the most recently produced items are sold first, with 'LIFO' standing for "last in, first out."