As Part of Assessing the Risk of Material Misstatement,the Audit

question 7

Multiple Choice

As part of assessing the risk of material misstatement,the audit team must assess the control risk in the computerized processing system.Initially,the audit team must identify the overall processing scope of the system(s) ,which would include each of the following considerations except

• A) the types of transactions that are processed through the system.
• B) the specific control procedures that have been implemented by the client to prevent or detect misstatements that could occur based on the audit team's analysis.
• C) the programs and files that are accessed by the system in processing transactions.
• D) the type of output that is created as a result of processing transactions through the system.

---

Definitions:

Sale Occurs

The point at which a transaction is recognized, involving the transfer of goods or services from a seller to a buyer for money.

Enterprise

A business or company that engages in commercial, industrial, or professional activities.

Sells Goods

Describes the action or process where a business entity offers physical products to consumers in exchange for payment.

Retailer

A business that sells goods directly to consumers, typically in small quantities.