A Client Company Has a Small Number of Finance and IT

question 54

Multiple Choice

A client company has a small number of finance and IT personnel that supports a packaged financial reporting software system. The appropriate tests of controls could include auditor verification that:

• A) the code in the packaged software cannot be changed by the user.
• B) management override is not possible in this small environment.
• C) outside professionals supplement the financial reporting function and provide an assessment of ICFR effectiveness.
• D) entity-level controls are not relevant in this small environment.

Appreciate the role of work sampling and other performance-based selection methods.

Understand different types of interviews and their purposes.

Recognize the importance of preparation and communication skills for successful interviews.

Comprehend the role and the importance of reference checks in the selection process.

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Definitions:

Prereproductive Individuals

Organisms that have not yet reached sexual maturity and thus are not capable of reproduction.

Survivorship Curve

A graph showing the number or proportion of individuals surviving to each age for a given species or group.

R-selected

A trait in certain species characterized by high reproduction rates, many offspring, and minimal parental care.

Eggs

Reproductive cells produced by female organisms in many species, including birds, reptiles, amphibians, most fish, and certain mammals; also, a common food source.