Identify the Activity Below That the External Auditor Should Not

question 106

Multiple Choice

Identify the activity below that the external auditor should not be involved.

• A)Examining system access logs.
• B)Developing the information system.
• C)Examining logical access policies and procedures.
• D)Making recommendations to management for improvement of existing internal controls.

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Definitions:

Net 45

A payment term indicating that the full amount is due for payment 45 days after the invoice date.

Sales Discount

A reduction in the price of a product or service offered to customers to encourage prompt payment.

FOB Shipping Point

A term used in shipping contracts to indicate that the buyer is responsible for the cost and risk of loss or damage once the goods are shipped by the seller.

Perpetual Inventory Method

A system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.