Which of the following application controls verifies the accuracy of transaction results in a system?
A manufacturer uses a materials requirements planning 1RP) system to track inventory, orders, and raw material requirements. A preliminary audit assessment indicates that the organization's inventory is understated. Using audit software, what conditions should the auditor search for in the MRP database to support this hypothesis?
I. Item cost set at zero.
II. Negative quantities on hand.
III. Order quantity exceeding requirements.
IV.
Inventory lead times exceeding delivery schedule.
An entity has a 50% gross margin, general and administrative expenses of US $50, interest expense of US $20, and profit of US $10 for the year just ended. If the corporate tax rate is
50%, the level of sales for the year just ended was:
At one organization, the specific terms of a contract require both the promisor and promisee to sign the contract in the presence of an independent witness. What is the primary role to the witness to these signatures?
Which of the following purchasing scenarios would gain the greatest benefit from implementing electronic data interchange?
