Jones Ltd Has Numerous Customers

question 27

Multiple Choice

Jones Ltd has numerous customers. Each customer file contains name, address, credit limit and account balance. The auditor wishes to undertake a test of the automated control that does not allow account balance to exceed credit limit. The best procedure for the auditor to follow would be to: A. develop a program to compare credit limits with account balances and print out the details of any account with a balance exceeding its credit limit.

• A) ANSB. develop test data that would cause some account balances to exceed the credit limit and determine if the system properly detects such situations.
• B) request a printout of a sample of account balances so they can be individually checked against the credit limits.
• C) request a printout of all account balances so they can be manually checked against the credit limits.

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Definitions:

Decertification

The process by which a labor union is removed as the bargaining representative of a group of employees, typically through a vote among the employees.

Certifying

The process of formally validating the qualifications, capabilities, or quality of an individual or entity.

NLRA

Stands for the National Labor Relations Act, which is legislation enacted in 1935 in the United States to protect the rights of employees and employers, to encourage collective bargaining, and to curtail certain private sector labor and management practices.

Recognition Strikes

Work stoppages by employees aimed at forcing an employer to recognize their union as the official bargaining agent for the workforce.