There Is a Potential Conflict of Interest When IT Consultants

question 19

True/False

There is a potential conflict of interest when IT consultants or auditors recommend their own products and services or those of an affiliated vendor to remedy a problem they have detected.

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Definitions:

Expenses

Costs incurred in the process of earning revenue, typically reflected in the income statement to calculate net income.

Financial Information

Data relating to the financial status, performance, and changes in financial position of an entity.

Revenues

The cumulative income derived from transactions involving goods or services tied to the main business functions.

Expenses

Costs incurred by a business in the process of earning revenue, which are not directly tied to the production of goods or services.