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For a Complex IT System, Auditors Are Least Likely to Use

question 84

Multiple Choice

For a complex IT system, auditors are least likely to use which of the following when documenting their understanding of internal controls?


Definitions:

Shareholder Leverage

The use of borrowed funds by shareholders to increase their potential returns from an investment.

Operating Leverage

A measure of how revenue growth translates into growth in operating income due to fixed costs in a company's business model.

Tax Rate

The percentage at which an individual or corporation is taxed by the government on their income or profits.

Cost of Debt

The effective rate that a company pays on its current debt, which can be measured in terms of either the before-tax or after-tax cost.

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