Which of the Following Are IT Controls That the Auditor

question 11

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 read sales orders,shipping documents,and sales invoices
• E)Goods are shipped only to customers with valid sales orders
• F)Both A and E
• G)Both B and D

---

Definitions:

Maturity

Maturity in finance refers to the date on which the principal or final payment of a loan, bond, or other financial instrument is due to be paid in full.

Percent of Sales Method

A financial forecasting model used to estimate certain balance sheet and income statement figures based on projected sales revenue.

Uncollectible Accounts Receivable

Refers to the portion of accounts receivable that a company does not expect to collect due to customers being unable to pay.

Allowance

An amount set aside or deducted to account for possible adjustments or for diminution in value, notably in the contexts of accounts receivable and inventory.