Auditors of ERP Systems

question 38

Multiple Choice

Auditors of ERP systems

• A) need not be concerned about segregation of duties because these systems possess strong computer controls.
• B) focus on output controls such as independent verification to reconcile batch totals.
• C) are concerned that managers fail to exercise adequate care in assigning permissions.
• D) do not view the data warehouse as an audit or control issue at all because financial records are not stored there.
• E) need not review access levels granted to users because these are determined when the system is configured and never change.

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Definitions:

Stockholders' Equity

Equity interest in a corporation, split into shares and representing ownership in the corporation's assets after liabilities are settled.

Liabilities

Financial obligations or debts that a company owes to others, which can be classified as current (short-term) or non-current (long-term).

Nonpayment

The failure to fulfill a financial obligation, such as not paying a bill, loan, or other types of debt when due.

Net Income

The amount of earnings left over after all expenses, including taxes and interest, have been deducted from total revenues.