An Auditor Would Least Likely Use Computer Software to

question 39

Multiple Choice

An auditor would least likely use computer software to

• A)access client data files.
• B)prepare spreadsheets.
• C)assess information systems control risk.
• D)construct parallel simulations to test the client's computing system.

Differentiate between primary and secondary markets for securities.

Understand the use of electronic funds transfer systems in managing business transactions.

Recognize the function and utilization of a lockbox system to enhance cash management.

Distinguish between current and long-term assets and liabilities.

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Definitions:

Planning Budget

A budget created for a specific level of activity; it can be adjusted over time to reflect actual business conditions.

Administrative Expenses

Costs associated with the general administration of a business, including office supplies and salaries of non-production staff.

Planning Budget

A forecast of revenue, expenses, and cash flow used by organizations to plan for the upcoming period.

Occupancy Expenses

Costs related to occupying a physical space, such as rent, utilities, and property taxes.