In Comparing (1)the Adequacy of the Hardware Controls in the System

question 21

Multiple Choice

In comparing (1) the adequacy of the hardware controls in the system with (2) the organization's methods of handling the errors that the computer identifies, the independent auditor is:

• A)unconcerned with both (1)and (2).
• B)equally concerned with (1)and (2).
• C)less concerned with (1)than with (2).
• D)more concerned with (1)than with (2).

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Definitions:

LIFO Method

An inventory valuation method where the last items added to inventory are the first ones to be used or sold.

Inventory Value

The total cost or market value of all the goods and materials held by a company for the purpose of resale.

Year-End Inventory

The total value of a company's merchandise, goods, and materials on hand at the end of a fiscal year, used to calculate cost of goods sold and profitability.

Balance On Hand

The amount of cash or resources available for use immediately, often referenced in accounting and inventory management.