In Which of the Following Situations Would an Auditor Most

question 40

Multiple Choice

In which of the following situations would an auditor most likely use a strategy of reliance on internal control?

• A)The systems analyst reviews output and controls the distribution of output from the IT department.
• B)The entity has been slow to update its IT system to reflect changes in billing practices.
• C)No paper trail is generated, as the entity receives sales orders, bills customers and receives payment based only on information generated from IT.
• D)The auditor has been unable to determine whether all changes to a client's IT were properly authorised.

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Definitions:

Factory Labor

Work performed by individuals in manufacturing settings, often characterized by repetitive tasks, long hours, and, historically, substandard working conditions.

Real Income

The income of an individual or group after adjusting for inflation, reflecting the true purchasing power of the money earned.

Working-Class Americans

Individuals in the United States who are employed in manual labor or industrial jobs, often with lower wages and less job security.

Profound Recession

A term indicating a severe and prolonged economic downturn, deeper than a standard recession, with significant impacts on employment and economic growth.