Which of the Following Statements Best Describes the Impact on an Audit

question 17

Multiple Choice

Which of the following statements best describes the impact on an audit when a client uses computerized processing of transactions?

• A)The objective of the audit examination focuses on detection of fraud and theft through the computer.
• B)The type of substantive procedures performed by the audit team change because of the use of computerized processing.
• C)The effectiveness of computer controls implemented by the client over its computerized processing may need to be evaluated by audit teams.
• D)Different independence standards are introduced for audit teams when clients utilize computerized processing.

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Definitions:

Situational Leadership Model

A management theory proposing that effective leadership involves adjusting one's style to the maturity level of the individuals being led.

Leadership Styles

The various approaches to leadership, ranging from authoritarian to democratic to transformational, each with its unique methodology and application.

Event Behavior

The actions and reactions of individuals or groups in response to specific events or situations.

Interaction Behavior

The manner in which individuals or entities act and respond to each other within a given context.