Data Corporation Has Just Computerized Its Billing and Accounts Receivable

question 30

Multiple Choice

Data Corporation has just computerized its billing and accounts receivable record keeping. You want to make maximum use of the new computer in your audit of Data Corporation. Which of the following audit techniques could not be performed through a computer program?

• A)Tracing audited cash receipts to accounts receivable credits.
• B)Selecting accounts to be confirmed on a random basis.
• C)Examining sales invoices for completeness, consistency between different items, valid conditions, and reasonable amounts.
• D)Resolving differences reported by customers on confirmation requests.

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Definitions:

Automatically Terminate

The cessation of a contract or agreement without any action required by the parties involved, typically triggered by predefined conditions being met.

Specific Subject Matter

A particular area of study, knowledge, or interest within a broader field or discipline.

Illegal

Activities or actions that are prohibited by law and subject to punishment, including civil or criminal penalties.

Consideration

Something of value that is exchanged between parties in a contract, which is necessary for the agreement to be legally binding.