Which Test of Controls Will Provide Evidence That the System

question 39

Multiple Choice

Which test of controls will provide evidence that the system as originally implemented was free from material errors and free from fraud?

• A)A cost-benefit analysis was conducted.
• B)The detailed design was an appropriate solution to the user's problem.
• C)Tests were conducted at the individual module and total system levels prior to implementation.
• D)Problems detected during the conversion period were corrected in the maintenance phase.

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Definitions:

Depreciation Expense

The allocated amount of the cost of a tangible or physical asset over its useful life, reflecting the decrease in the asset’s value due to use and/or age.

Correction Of An Error

Adjustments made in financial statements to amend mistakes or omissions in previously issued financial reports.

Reporting Entity

An entity for which there are users who rely on the entity's financial reports for making economic decisions.

Accounting Estimate

Approximations or judgments made by management in preparing financial statements, necessary when a precise value cannot be readily determined.