Which of the following is not a major component of an audit of e-commerce activities?

• A.Make certain that goals and objectives can be achieved.
• B.Assess the internal control structure.
• C.Review the interface issues.
• D.Evaluate the business continuity and disaster recovery plans.

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What does the following scatter gram suggest?

• A.Sales revenue is inversely related to training costs.
• B.The training program is not effective.
• C.Training costs do not affect sales revenue.
• D.Several data points are incorrectly plotted.

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Which of the following is an effective preventive control for data center security?

• A.Motion detectors.
• B.Monitoring access to data center workstations
• C.Key card access to the facility.
• D.Security cameras.

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The percentage of sales method, rather than the percentage of receivables method, would be used to estimate uncollectible accounts if an organization seeks to:

• A.Emphasize the accuracy of the net realizable value of the receivables on the balance sheet.
• B.Eliminate the need for an allowance for doubtful accounts.
• C.Use a method that approximates the matching principle.
• D.Use an aging schedule to more closely estimate uncollectible accounts.

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What is RST's accounts receivable turnover for Year 6?

• A.19 times
• B.16 times
• C.10 times
• D.6 times

Correct Answer: A

The accounts receivable turnover equals net credit sales divided by average trade receivables net). In Year 6, the accounts receivable turned over 19 times {285.000 [(16,000 ending AIR + 14,000 beginning AIR) / 2]}.


The market value of RST's ordinary stock at the end of Year 6 was US $100.00 per share.

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