The Verification of IT General Controls as Part of a SOX

question 8

Multiple Choice

The verification of IT general controls as part of a SOX audit follows a

• A) Top-down procedure
• B) Bottom-up procedure
• C) Either of the above, depending upon the organization
• D) Both the above, to ensure comprehensive coverage

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Definitions:

Income from Operation

A company's earnings before interest and taxes (EBIT), representing the profit from ongoing, core business activities.

Dividends

Payments made by a corporation to its shareholders, typically from profits.

Shareholder Equity

The residual interest in the assets of a company after deducting liabilities, representing the net worth attributable to shareholders.

Common Stocks

Shares representing ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends and/or capital appreciation.