Auditors Who Test Manual Controls That Rely on IT-Generated Reports

question 76

Multiple Choice

Auditors who test manual controls that rely on IT-generated reports must consider:

• A)the effectiveness of management's review.
• B)automated controls over the accuracy of information in the report.
• C)both A and B
• D)neither A or B.

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Definitions:

Sales Increase

An upward trend in the volume or value of sales transactions over a particular period, indicating growth in business activity.

Margin of Safety

The difference between actual or projected sales and the break-even sales, indicating the amount by which sales can decline before a business incurs losses.

Percentage of Sales

A financial ratio that expresses certain financial metrics, such as expenses or profits, as a percentage of total sales, providing insight into efficiency or profitability.

Margin of Safety

This metric indicates the difference between actual or projected sales and the break-even sales point, highlighting the buffer a business has before it incurs a loss.