When Evaluating Internal Control of an Entity That Processes Revenue

question 72

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:

Recovery Phase

A stage in the economic cycle where activity begins to increase again after a period of recession or depression, marked by rises in employment, consumer spending, and production.

Business Cycle

The cyclic phenomenon of economic expansion and contraction experienced by an economy over time.

Trough

A Trough in economics is a phase in the business cycle where activity is at its lowest point, preceding a recovery and expansion phase.

Business Cycle

The Business Cycle is the fluctuation of economic activity that an economy experiences over a period of time, marked by phases of expansion and contraction.