Shelly: One of the accounting clerks mentioned that you’re thinking about making a change in the accounting system. Norvs: As a matter of fact, Red has been looking into using a new web-based accounting software that should make the bookkeeping process an easier task for the clerks. This software includes a budgeting system that should help control costs and identify those areas that need attention. Because I’ve always monitored the company’s expenses, I didn’t previously see the need for a formal budgeting system. If something didn’t seem right, May or I would bring the problem at the informal monthly office meeting between all the employees and try to resolve the issue. Given our current success, the implementation of a more sophisticated budgeting system seems like a wise investment. The following risks that may closely arise for the new web-based accounting software is as follows except: Group of answer choices Infrastructure risk Availability risk Commerce risk Mobility risk
48.
Shelly is an internal audit manager of Air Clean and Safe Express, Inc. a publicly listed company, which provides general air conditioner cleaning and maintenance services to its industrial and residential customers. This will be the first time that the company will be audited. Thus, Shelly does not have any previous working file to review. Shelly recently conducted a preliminary interview with Mr. Norvs Gorgeous, who along with his sister, Ms. May Gorgeous owns the company.
Interview with Auditee (Independent Situation)
Shelly: One of the accounting clerks mentioned that you’re thinking about making a change in the accounting system.
Norvs: As a matter of fact, Red has been looking into using a new web-based accounting software that should make the bookkeeping process an easier task for the clerks. This software includes a budgeting system that should help control costs and identify those areas that need attention. Because I’ve always monitored the company’s expenses, I didn’t previously see the need for a formal budgeting system. If something didn’t seem right, May or I would bring the problem at the informal monthly office meeting between all the employees and try to resolve the issue. Given our current success, the implementation of a more sophisticated budgeting system seems like a wise investment.
The following risks that may closely arise for the new web-based accounting software is as follows except:
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