During the Current Year Being Audited, Hitech, Inc

question 55

Multiple Choice

During the current year being audited, Hitech, Inc. changed from a conventional payroll punch clock to a computerized payroll time system. Factory employees now record time in and out with magnetic cards and the IT system automatically updates all payroll records. Because of this change:

• A)the auditor must audit through the computer.
• B)internal control has improved.
• C)without paper clock cards, part of the audit trail has been altered.
• D)the potential for payroll related fraud has been diminished.

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Definitions:

Short Run

A period in economics during which at least one input, such as plant size, is fixed and cannot be changed.

Firm's Output

The total quantity of goods or services produced by a company or business within a specific period.

Short Run

A period in economic analysis where at least one factor of production is fixed, limiting the immediate ability of businesses to adjust to market changes.

Firm's Output

The total quantity of goods and services produced by a company during a specific period.