IT Controls That the Auditor Might Expect to Find in the Cash

question 70

Multiple Choice

IT controls that the auditor might expect to find in the cash process are

• A)IT system restricts access to individuals authorized to input investment purchases and investment sales
• B)IT system restricts access to individuals authorized to input cash transfers between bank and accounts
• C)Trading and available-for-sale investments must have a broker's advice number to be entered into the accounting system
• D)Bank transfer report is generated daily (weekly or monthly)and is reviewed by an individual one level above the level making the transfer
• E)Held-to-maturity investments must have a face value,which includes the stated amount of the bond and the discount or premium on the bond
• F)Both B and D

Evaluate the effects of changes in sales, costs, and prices on a company's break-even point and profitability.

Apply the concept of operating leverage and its impact on a company's financial risk.

Understand the concept of break-even analysis and its application in business decision making.

Analyze the financial performance of a business using break-even points in sales units and dollars.

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Definitions:

Earth Flow

A type of mass wasting event where soil and regolith move slowly downslope, often triggered by saturation from rainfall or melting snow.

Creep

The slow, continuous movement of material, such as soil and other weak materials, down a slope.

Prehistoric Slope Failures

Landslides and similar geologic occurrences that took place before recorded history, often detected through sediment analysis.

Hummocky Topography

A type of chaotic landscape characterized by randomly distributed humps and pits, commonly created by a landslide or less commonly by a pyroclastic eruption.