When Auditing Client's Using Database Management Systems the Auditor Is

question 99

Multiple Choice

When auditing client's using database management systems the auditor is principally aware of elevated risk due to:

• A) multiple users can access and update accounting files.
• B) the accounting information is only in one place.
• C) the database administrator may lack appropriate accounting knowledge.
• D) multiple users could all access the data simultaneously causing system shutdown.

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Definitions:

Fiscal Policy

Government policies concerning taxation and spending to influence economic conditions, including aggregate demand.

Crowding Out

A situation where increased public sector spending leads to a reduction in private sector spending, which can dampen or negate the intended stimulative effect of the government's expenditures.

Investment Spending

Expenditure on capital goods including buildings, machinery, and equipment, which is intended to increase future production.

Aggregate Expenditure

The total amount spent on goods and services in an economy at a particular time.