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:

Sales Representatives

Individuals who represent a company in selling its products or services, often directly engaging with potential and current customers.

Nonfinancial Reward

Incentives or benefits given to employees or individuals that are not monetary, such as recognition or professional growth opportunities.

Sales Contest

A short-term incentive designed to elicit a specific response from the sales force.

Bonus

A payment made at management’s discretion when the salesperson attains certain goals; usually given only periodically, such as at the end of the year.