Which of the Following Statements Is True with Regards the Auditor's

question 26

Multiple Choice

Which of the following statements is true with regards the auditor's likelihood of relying on controls in electronic commerce environments?

• A)The auditor is more likely to identify controls they can rely upon in a B2B electronic commerce environment than they are in a B2C electronic commerce environment.
• B)The auditor is more likely to identify controls they can rely upon in a B2C electronic commerce environment than they are in a B2B electronic commerce environment.
• C)The auditor equally likely to identify controls they can rely upon in a B2B electronic commerce environment as they are in a B2C electronic commerce environment.
• D)The auditor is not likely to identify controls they can rely upon in either a B2B electronic commerce environment or a B2C electronic commerce environment.

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Definitions:

Office Utilities

Expenses associated with the essential services used in an office, such as electricity, water, gas, and internet.

Selling and Administrative Expense

Operating expenses that are not directly tied to production, including costs related to sales, marketing, and general administration of a company.

Direct Materials

The raw materials directly traceable to the manufacturing of a product, forming a significant part of the production cost.

Advertising Fees

Costs associated with promoting products or services through various media channels to increase consumer awareness and sales.