Continuous Assurance (Continuous Auditing) Will Lead To

question 88

Multiple Choice

Continuous assurance (continuous auditing) will lead to:

• A) fewer financial statement audits
• B) use of audit modules embedded in ERP systems
• C) convergence of GAAP and IFRS
• D) All of the above

---

Definitions:

Bailments

The temporary handover of control or possession of personal property by one party, the bailor, to another, the bailee, for a specific purpose.

Bailee's Sole Benefit

Bailee's sole benefit occurs when a bailment is made for the advantage of the bailee only, with no benefit accruing to the bailor.

Gratuitous Loan

A loan where the lender does not charge interest or fees, often made among family or friends or for charitable reasons.

Bailor's Sole Benefit

Refers to a situation in a bailment where the benefit of the arrangement is exclusively for the bailor, with the bailee undertaking the responsibility without receiving any benefit.