When the Client Changes the Computer Software

question 75

Multiple Choice

When the client changes the computer software:

• A)no additional testing is needed by the auditor.
• B)and application controls are effective, the auditor can easily identify when software changes are made.
• C)and general controls are effective, the auditor can easily identify when software changes are made.
• D)application and general controls can no longer by relied upon by the auditor.

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Definitions:

Statute of Frauds

A legal principle requiring certain contracts, such as those for the sale of land, to be in writing to be enforceable.

Verbal Contract

A legal agreement made through spoken words instead of written documentation, though harder to prove.

Indefinite Period

A time span without a specified end date, characterized by an absence of defined duration.

Part Performance

A doctrine that permits the courts to enforce an unwritten contract concerning land where certain conditions have been met.