Which of the Following Is Necessary to Audit Balances in an On-Line

question 17

Multiple Choice

Which of the following is necessary to audit balances in an on-line IT system in an environment where updated information is written over existing information?

• A)A utility program which reconciles the subsidiary ledgers with the general ledger.
• B)Periodic dumping of transaction files.
• C)A well-documented audit trail.
• D)An integrated test facility.

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Definitions:

Managerial Responsibility

The obligation of managers to make decisions, supervise subordinates, and implement activities that contribute to achieving the organization's objectives.

Variable Cost

Costs that vary directly with the level of production or output, such as materials and labor used in the production process.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, providing a more useful comparison for actual versus budgeted performance.

Budgeted Costs

Estimated financial plan for expenditures over a specified period.