Information Technology Skills Can Link Auditing to Accounting Information Systems

question 68

Multiple Choice

Information technology skills can link auditing to accounting information systems.Which of the following tasks can be completed using only information technology?

• A)All five generic steps of a financial statement audit.
• B)All ten steps in the accounting cycle.
• C)Both all five generic steps of a financial statement audit and all ten steps in the accounting cycle.
• D)Neither all five generic steps of a financial statement audit nor all ten steps in the accounting cycle.

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Definitions:

FIFO

First In, First Out, an inventory valuation method where goods purchased or produced first are sold or used first.

LIFO

An inventory valuation method, "Last-In, First-Out," where the most recently produced items are recorded as sold first.

Average Cost

A method of inventory valuation which calculates the cost of goods sold based on the average cost of all similar items in inventory.

Periodic Inventory System

An accounting method where the inventory is physically counted at specific intervals to determine the cost of goods sold and the ending inventory balance.