When Evaluating Internal Control of an Entity That Processes Revenue

question 44

Multiple Choice

When evaluating internal control of an entity that processes revenue transactions on the Internet, an auditor would be most concerned about the

• A) Potential for computer disruptions in recording sales.
• B) Lack of sales invoice documents as an audit trail.
• C) Frequency of archiving and data retention.
• D) Inability to establish test data.

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Definitions:

Beginning Inventory

The valuation of goods on hand for sale or use in production at the start of an accounting period.