Which of the Following Are IT Controls That the Auditor

question 24

Multiple Choice

Which of the following are IT controls that the auditor might expect in the revenue business process?

• A)The accounting system matches the information on the sales order with the sales invoice before revenue is recognized
• B)Sales revenue is recognized based on the date on the invoice document
• C)IT system prepares reports listing sales orders that have not been shipped,and shipments that have not been billed
• D)IT system restricts access to individuals authorized to read sales orders,shipping documents,and sales invoices
• E)Goods are shipped only to customers with valid sales orders
• F)both A and B
• G)both C and E

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Definitions:

Finished Goods

Products that have completed the manufacturing process and are ready to be sold to customers.

Units

Measurements or quantities of a product, item, or component, often used in inventory and production management.

Assumptions And Predictions

The process of making educated guesses or hypotheses about future events based on current or past information.

Budgeted Profit

The expected profit planned in a budget, calculated as anticipated revenues minus planned expenses.