Which of the Following Are IT Controls That the Auditor

question 16

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 and the shipping document 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 been shipped,and shipments that have been billed
• D)IT system restricts access to individuals authorized to input sales orders,shipping documents,and sales invoices
• E)Goods are shipped only to customers with valid addresses
• F)Both A and C
• G)Both A and D
• H)Both B and E

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Definitions:

Net Present Value

A calculation that determines the value of a series of future cash flows in today's dollars, taking into account the time value of money.

Automated Equipment

Equipment that operates with minimal human intervention, using technology to perform tasks that would otherwise require manual effort.

Attractive Investment

An investment that is appealing due to its potential for favorable returns or its alignment with investment criteria.

Simple Rate

A basic method for calculating interest or return, often expressed as a percentage over a period of time.