Which Test of Controls Will Provide Evidence That the System

question 46

Multiple Choice

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

• 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:

Tax Authority

A governmental entity responsible for the administration of taxes, including collection, enforcement, and interpretation of tax laws.

Legislative

Pertaining to the branch of government responsible for creating laws.

Private Letter Rulings

Issued by the IRS, these are written decisions provided to taxpayers, offering guidance on the tax treatment of complex transactions.

Tax Treatment

The specific way tax laws apply to different types of income, expenses, and individuals.