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.

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Definitions:

Service Sector

The segment of the economy that provides services rather than tangible goods, including industries like healthcare, education, and finance.

Official Statistics

Quantitative data produced and published by governmental statistical offices, covering various aspects of the economy, society, and environment.

Part-time Workers

Individuals who are employed and work fewer hours than the full-time requirement, typically less than 35 hours a week.

Survey Data

Information or insights collected systematically from questionnaires or interviews, often used in research to analyze opinions, behaviors, or characteristics of a population.