To Maintain the Objectivity Necessary for Performing an Independent Evaluation

question 68

Multiple Choice

To maintain the objectivity necessary for performing an independent evaluation function,auditors should not be involved in

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

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Definitions:

Insolvent Company

A company that is unable to pay its debts as they come due, or whose liabilities exceed its assets in value.

Unsecured Liabilities

Debts or obligations that do not have specific assets pledged as collateral in case of default.

Federal Income Taxes

Taxes levied by the national government on annual income earned by individuals, corporations, trusts, and other legal entities.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts.