Which of the following is true with respect to fraud risk factors in an IT environment?a. Employees in an IT environment are highly skilled.b. Audit teams cannot evaluate the accounting information system during the year.c. Higher dollar amounts are involved in an IT environment.d. Employees have increased access to information systems and computer resources in anIT environment

Question

Which of the following is true with respect to fraud risk factors in an IT environment?
a. Employees in an IT environment are highly skilled.
b. Audit teams cannot evaluate the accounting information system during the year.
c. Higher dollar amounts are involved in an IT environment.
d. Employees have increased access to information systems and computer resources in an
IT environment

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Auditing

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: An assurance service is defined as a service thata. Provides auditing services to nonfinancial infor...

A: Assurance service: It is aimed at improving the quality of information for the individual making dec...

Q: Stephanie's Bridal Shoppe sells wedding dresses. The average selling Price of each dress is $1,000, ...

A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at t...

Q: Feller, the sole owner of a small hardware business, has been told that the business should have its...

A: Auditing shall be the method of review of the financial statements of an agency (or individual) to d...

Q: Which duties should be separated in the payroll cycle?

A: Payroll System:   A payroll system is a system within an organization that is responsible for managi...

Q: Krispy Kreme was involved in an accounting fraud where the company reported false quarterly and annu...

A: Earnings management: Earnings management refers to the technique of accounting to prepare the financ...

Q: When a public accounting firm audits FUND-A in a mutual fund complex that has sisterfunds FUND-B and...

A:  

Q: How are the substantive procedures performed by the audit team related to the objective of MUS?

A:  

Q: P3-58A. (Learning Objective 1: Explain how accrual accounting differs from cash-basisaccounting) Ber...

A: Cash Basis Accounting: The cash basis of accounting recognizes revenues when cash is received, and e...

Q: The purpose of a checkpoint procedure is to facilitate restarting aftera. data processing errors.b. ...

A: The purpose of a checkpoint procedure is to facilitate restarting after data processing errors.

Q: Complete the common-size and common-base year financial statements [Income Statement (IS) and Balanc...

A: The statement of the balance sheet is calculated as per common size by dividing every line item by t...

Q: Q.2 Alexander Company purchased a piece of equipment for $12,000 and depreciated it for three years ...

A: Depreciation is reduction in the value of assets over the time due to normal wear and tear. There ar...

Q: Maines and Wahlen94 state in their research paper on the reliability of accounting information: “Acc...

A: Given: The reliability of the accounting information is explained in the research paper by Maine’s a...

Q: The stockholders’ equity accounts of Pearl Company have the following balances on December 31, 2017....

A: Click to see the answer

Q: On January 1, 2019, when its $30 par value common stock was selling for $80 per share, Ivanhoe Corp....

A: Convertible Debentures: A debenture holder is a creditor of the company.Any debenture is a long term...

Q: Bryer Co. purchases all of the assets and liabilities of Stellar Co. for $1,500,000. The fair value ...

A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired compan...

Q: Jackson Company had the following information in 2018:Accounts receivable 12/31/18.....................

A: Allowance for doubtful accounts: This is a contra asset account to the accounts receivable account t...

Q: On January 1, 2020, Grouper Company purchased 12% bonds having a maturity value of $350,000, for $37...

A: The below journal entries are passed to show the treatment of interest revenue and premium amortizat...

Q: Snyder’s cost of goods sold using the LIFO method would be:a. $7,200.b. $7,400.c. $7,475.d. $7,700.

A: LIFO is the inventory method in which inventory purchased at last will be sold first. 

Q: Straight-Line Depreciation A building acquired at the beginning of the year at a cost of $79,000 has...

A: Depreciation is the reduction in the value of an asset over time due to normal wear and tear, obsole...

Q: Indicate where each of the following items is reported on financial statements. Choose from the foll...

A: Financial statement:   Financial statements are condensed summary of transactions communicated in t...

Q: Identify the letter for the principle or assumption from A through F in the blank space next to each...

A: Click to see the answer

Q: Classify the following activities as part of the identifying (I), recording (R), or communicating (C...

A: Click to see the answer

Q: Briefly describe record counts, batch totals, and hash totals. What types of errors in input wouldea...

A: Input controls: It is created to provide reasonable guarantee of received data for processing by the...

Q: If you are the CEO and you give your employees a bonus at the end the year, according to their net i...

A: The weighted-average cost flow supposition that is a costing strategy that is utilized to allot expe...

Q: What is the purpose of an audit strategy memorandum? What information should it contain?

A: Audit Strategy Memorandum: After the calculation of all financial statement risks, identification o...

Q: Jagdeep sold his Indian restaurant “Maya no Dhaba” to Jasleen for the amount of $450,000. On top of ...

A: $50,000 received from jasleen  for not opening a new Indian restaurant in the radius of 10 kms for t...

Q: On January 1, 2020, Kingbird, Inc. purchased 11% bonds having a maturity value of $541,000 for $558,...

A: The following journal entries are passed to show the investment in bonds.

Q: S3-5. (Learning Objective 2: Apply the revenue and expense recognition principles)Identify the accou...

A: As more than one question is asked I am providing you answer for first three questions.  

Q: Your best friend is from another country. One day after a particularly stimulating lecture on the me...

A: Click to see the answer

Q: Kasey Hartman is the controller for Wholemart Company, which has numerous long-term investments in d...

A: The securities that are termed as held-to-maturity are purchased with an aim to keep them till their...

Q: Biloxi Gifts uses sales journal, purchases journal, cash receipts journal, cash payments journal, an...

A: Given: Purchase of merchandise on credit = $ 2,600 Contribution to automobile = $ 17000 Sold merchan...

Q: Abercrombie & Fitch Co. reported the following in its financial statement notes.Ending inventory...

A: Definition: FOB destination: When the seller bears the freight charges for the delivery of merchandi...

Q: In 400-500 words please answer the following: Management decides to increase the selling price from ...

A: 1. Explain the cost-volume relationships that should Paulsen take into consideration for the origina...

Q: Whyville Corporation obtained its charter from the state in January that authorized 500,000 sharesof...

A: 1. Indicate the effects of each transaction on the accounting equation. Working notes:

Q: Why is it a good idea to create a “Budgeting Assumptions” tab when creating a master budget inMicros...

A: Master budget: Master budget is an interrelated budget that collectively summarizes all the planned...

Q: On January 1, 2021, Sweetwater Furniture Company leased office space under a 21-year operating lease...

A: Definition: Journal entry: Journal entry is a set of economic events which can be measured in moneta...

Q: An audit team most likely would assess control risk at the maximum if the payroll department supervi...

A: An audit team most likely would assess control risk at the maximum if the payroll department supervi...

Q: Which of the following items would we report in the income statement just before net income? a. Loss...

A: Income statement:   The financial statement which reports revenues and expenses from business operat...

Q: Inventory at the beginning of the year cost $13,400. During the year, the company purchased(on accou...

A: Cost of goods sold = Beginning inventory + Purchases - Ending inventory     

Q: In August, Joplin Designs sold $510,000 of merchandise; all sales were in cash.The cost of sales for...

A: Record the journal entries for the monthly sales, cost of sales:

Q: Foxburo Company expects to pay a $2.34 per share cash dividend this year on its common stock. The cu...

A: Cash dividend: The amount of cash provided by a corporation out of its distributable profits to its ...

Q: Home Hardware reported beginning inventory of 20 shovels, for a total cost of $100. The companyhad t...

A: Periodic inventory system: In the periodic inventory system, the purchase and sale of inventory is n...

Q: how to declare the dividend of a business

A: Proprietors and speculators in independent companies get an incentive from their possession stakes t...