What Is the Purpose of an Information Systems Audit

question 43

Multiple Choice

What is the purpose of an information systems audit?

• A)To determine the inherent risk factors found in the system.
• B)To review and evaluate the internal controls that protect the system.
• C)To examine the reliability and integrity of accounting records.
• D)To examine whether resources have been used in an economical and efficient manner in keeping with organization goals and objectives.

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Definitions:

External Equity

Refers to funds raised from outside the company, typically through issuing new shares to investors.

External Financing

Funds raised from outside the business, including bank loans, equity investments, and bond issues.

Dividend Payout

The portion of the company's earnings paid out to shareholders, usually in the form of dividends.

Sales Growth

This metric measures the increase in sales revenue over a specific period, indicating the business's ability to grow its operations and revenue.