When a Client Company's Systems Rely Heavily on IT, Auditors

question 44

Multiple Choice

When a client company's systems rely heavily on IT, auditors will be concerned with the possibility that:

• A) unauthorized program changes could result in a system that uniformly processes data in an unauthorized manner.
• B) embedded controls are likely to be circumvented.
• C) risk of material misstatement is likely to increase as the complexity of the client's IT system increases.
• D) specialized IT knowledge on the audit engagement team is not necessary unless the client company engages in electronic commerce.

Distinguish between different types of conformity within teams.

Recognize the role of cohesiveness in team commitment and desire to remain part of the team.

Understand the concept of free riders and their effects on team dynamics.

Describe common types of teams used in organizations and their impacts on productivity and quality.

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Definitions:

Composite View

A convention of representation in art in which part of a figure is shown in profile and another part of the same figure is shown frontally; often used in ancient Egyptian and other Near Eastern art traditions.

Three-Quarter Pose

A common pose in portraiture where the subject is turned slightly away from the viewer, showing three-quarters of their face.

Neolithic Society

Refers to the later part of the Stone Age, when human societies began to practice agriculture and settle in permanent communities, leading to the development of complex societies.

Bronze Tools

Tools made from bronze, an alloy consisting primarily of copper, often used in the early periods of human civilization for their durability.