Which of the Following Statements Best Describes the Impact on an Audit

question 17

Multiple Choice

Which of the following statements best describes the impact on an audit when a client uses computerized processing of transactions?

• A)The objective of the audit examination focuses on detection of fraud and theft through the computer.
• B)The type of substantive procedures performed by the audit team change because of the use of computerized processing.
• C)The effectiveness of computer controls implemented by the client over its computerized processing may need to be evaluated by audit teams.
• D)Different independence standards are introduced for audit teams when clients utilize computerized processing.

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Definitions:

Grade Level

A step or stage in an education system that categorizes students based on age, development, or years of schooling.

Null Hypotheses

A hypothesis that there is no significant difference or effect and any observed difference is due to chance.

Research Hypotheses

Predictive assertions by scientists about the connection between multiple variables.

F Statistic

A statistic used to determine the ratio of two variances to test the hypothesis of equal variances.