Indicate the five major considerations which were introduced when client uses information technology.

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Answer 1

Question

Chapter H, Problem 1RC

To determine

Indicate the five major considerations which were introduced when client uses information technology.

Expert Solution & Answer

Explanation of Solution

The Information Technology (IT) has enabled lots of opportunities to the world of business. IT has enabled opportunities like business strategies, enhances the performance of business processes, and also facilitates business decision making.

The following are the five major consideration need to be considered by the audit team when client uses information technology:

The possibility of input errors – There is a possibility to make errors by the client personnel when entering the information to the electronic format. Moreover, they introduced various types of controls which are specifically designed to avoid input errors.
The existence of systematic rather than random processing errors – When involving manual processing system, there is a chance to make errors because humans are processing transactions and may make random mistakes. However, in automatic processing systems, handle all transactions in a same manner.
The lack of an audit trail – Generally, the process of entering data is done electronically. In many situations, hard copy only the final output of processing. Moreover, it affects the audit team in the position of not having the facility to view a paper trail of the processing of transactions.
The possibility of inappropriate access to computer files and programs – The growth of information technology allow the chances to access computer files and important programs. In preventing those behaviors, client needs to implement strong security or password for accessing the important files. In addition, they must monitor periodically who access the files and programs.
The reduced human involvement in the processing of transactions – The use of information technology reduces human participation in processing the transactions.
For example: Activities performed by human can also be done through computer programs easily. Moreover, this will save time and cost.

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Chapter 18 Homework i Saved 15 Exercise 18-14 (Algo) Contribution margin income statement LO C2 1 points eBook Hint Sunn Company manufactures a single product that sells for $190 per unit and whose variable costs are $133 per unit. The company's annual fixed costs are $628,000. The sales manager predicts that next year's annual sales of the company's product will be 39,800 units at a price of $198 per unit. Variable costs are predicted to increase to $138 per unit, but fixed costs will remain at $628,000. What amount of income can the company expect to earn under these predicted changes? Prepare a contribution margin income statement for the next year. SUNN COMPANY Contribution Margin Income Statement Units $ per unit 39,800 $ 198 Ask Sales Variable costs 39,800 Print Contribution margin 39,800 Fixed costs Income References Mc Graw Hill $ 7,880,400 138 5,492,400 2,388,000 628,000 $ 1,760,000 Help Save & Exit Submit Check my work

Answer 2

Question

Chapter H, Problem 1RC

To determine

Indicate the five major considerations which were introduced when client uses information technology.

Expert Solution & Answer

Explanation of Solution

The Information Technology (IT) has enabled lots of opportunities to the world of business. IT has enabled opportunities like business strategies, enhances the performance of business processes, and also facilitates business decision making.

The following are the five major consideration need to be considered by the audit team when client uses information technology:

The possibility of input errors – There is a possibility to make errors by the client personnel when entering the information to the electronic format. Moreover, they introduced various types of controls which are specifically designed to avoid input errors.
The existence of systematic rather than random processing errors – When involving manual processing system, there is a chance to make errors because humans are processing transactions and may make random mistakes. However, in automatic processing systems, handle all transactions in a same manner.
The lack of an audit trail – Generally, the process of entering data is done electronically. In many situations, hard copy only the final output of processing. Moreover, it affects the audit team in the position of not having the facility to view a paper trail of the processing of transactions.
The possibility of inappropriate access to computer files and programs – The growth of information technology allow the chances to access computer files and important programs. In preventing those behaviors, client needs to implement strong security or password for accessing the important files. In addition, they must monitor periodically who access the files and programs.
The reduced human involvement in the processing of transactions – The use of information technology reduces human participation in processing the transactions.
For example: Activities performed by human can also be done through computer programs easily. Moreover, this will save time and cost.

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Answer 3

Question

Chapter H, Problem 1RC

To determine

Indicate the five major considerations which were introduced when client uses information technology.

Expert Solution & Answer

Explanation of Solution

The Information Technology (IT) has enabled lots of opportunities to the world of business. IT has enabled opportunities like business strategies, enhances the performance of business processes, and also facilitates business decision making.

The following are the five major consideration need to be considered by the audit team when client uses information technology:

The possibility of input errors – There is a possibility to make errors by the client personnel when entering the information to the electronic format. Moreover, they introduced various types of controls which are specifically designed to avoid input errors.
The existence of systematic rather than random processing errors – When involving manual processing system, there is a chance to make errors because humans are processing transactions and may make random mistakes. However, in automatic processing systems, handle all transactions in a same manner.
The lack of an audit trail – Generally, the process of entering data is done electronically. In many situations, hard copy only the final output of processing. Moreover, it affects the audit team in the position of not having the facility to view a paper trail of the processing of transactions.
The possibility of inappropriate access to computer files and programs – The growth of information technology allow the chances to access computer files and important programs. In preventing those behaviors, client needs to implement strong security or password for accessing the important files. In addition, they must monitor periodically who access the files and programs.
The reduced human involvement in the processing of transactions – The use of information technology reduces human participation in processing the transactions.
For example: Activities performed by human can also be done through computer programs easily. Moreover, this will save time and cost.

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Answer 4

Question

Chapter H, Problem 1RC

To determine

Indicate the five major considerations which were introduced when client uses information technology.

Expert Solution & Answer

Explanation of Solution

The Information Technology (IT) has enabled lots of opportunities to the world of business. IT has enabled opportunities like business strategies, enhances the performance of business processes, and also facilitates business decision making.

The following are the five major consideration need to be considered by the audit team when client uses information technology:

The possibility of input errors – There is a possibility to make errors by the client personnel when entering the information to the electronic format. Moreover, they introduced various types of controls which are specifically designed to avoid input errors.
The existence of systematic rather than random processing errors – When involving manual processing system, there is a chance to make errors because humans are processing transactions and may make random mistakes. However, in automatic processing systems, handle all transactions in a same manner.
The lack of an audit trail – Generally, the process of entering data is done electronically. In many situations, hard copy only the final output of processing. Moreover, it affects the audit team in the position of not having the facility to view a paper trail of the processing of transactions.
The possibility of inappropriate access to computer files and programs – The growth of information technology allow the chances to access computer files and important programs. In preventing those behaviors, client needs to implement strong security or password for accessing the important files. In addition, they must monitor periodically who access the files and programs.
The reduced human involvement in the processing of transactions – The use of information technology reduces human participation in processing the transactions.
For example: Activities performed by human can also be done through computer programs easily. Moreover, this will save time and cost.

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Answer 5

Chapter H, Problem 1RC

To determine

Indicate the five major considerations which were introduced when client uses information technology.

Expert Solution & Answer

Explanation of Solution

The Information Technology (IT) has enabled lots of opportunities to the world of business. IT has enabled opportunities like business strategies, enhances the performance of business processes, and also facilitates business decision making.

The following are the five major consideration need to be considered by the audit team when client uses information technology:

The possibility of input errors – There is a possibility to make errors by the client personnel when entering the information to the electronic format. Moreover, they introduced various types of controls which are specifically designed to avoid input errors.
The existence of systematic rather than random processing errors – When involving manual processing system, there is a chance to make errors because humans are processing transactions and may make random mistakes. However, in automatic processing systems, handle all transactions in a same manner.
The lack of an audit trail – Generally, the process of entering data is done electronically. In many situations, hard copy only the final output of processing. Moreover, it affects the audit team in the position of not having the facility to view a paper trail of the processing of transactions.
The possibility of inappropriate access to computer files and programs – The growth of information technology allow the chances to access computer files and important programs. In preventing those behaviors, client needs to implement strong security or password for accessing the important files. In addition, they must monitor periodically who access the files and programs.
The reduced human involvement in the processing of transactions – The use of information technology reduces human participation in processing the transactions.
For example: Activities performed by human can also be done through computer programs easily. Moreover, this will save time and cost.

Answer 6

Chapter H, Problem 1RC

To determine

Indicate the five major considerations which were introduced when client uses information technology.

Expert Solution & Answer

Explanation of Solution

The Information Technology (IT) has enabled lots of opportunities to the world of business. IT has enabled opportunities like business strategies, enhances the performance of business processes, and also facilitates business decision making.

The following are the five major consideration need to be considered by the audit team when client uses information technology:

The possibility of input errors – There is a possibility to make errors by the client personnel when entering the information to the electronic format. Moreover, they introduced various types of controls which are specifically designed to avoid input errors.
The existence of systematic rather than random processing errors – When involving manual processing system, there is a chance to make errors because humans are processing transactions and may make random mistakes. However, in automatic processing systems, handle all transactions in a same manner.
The lack of an audit trail – Generally, the process of entering data is done electronically. In many situations, hard copy only the final output of processing. Moreover, it affects the audit team in the position of not having the facility to view a paper trail of the processing of transactions.
The possibility of inappropriate access to computer files and programs – The growth of information technology allow the chances to access computer files and important programs. In preventing those behaviors, client needs to implement strong security or password for accessing the important files. In addition, they must monitor periodically who access the files and programs.
The reduced human involvement in the processing of transactions – The use of information technology reduces human participation in processing the transactions.
For example: Activities performed by human can also be done through computer programs easily. Moreover, this will save time and cost.

Answer 7

Chapter H, Problem 1RC

To determine

Indicate the five major considerations which were introduced when client uses information technology.

Answer 8

Expert Solution & Answer

Explanation of Solution

The Information Technology (IT) has enabled lots of opportunities to the world of business. IT has enabled opportunities like business strategies, enhances the performance of business processes, and also facilitates business decision making.

The following are the five major consideration need to be considered by the audit team when client uses information technology:

The possibility of input errors – There is a possibility to make errors by the client personnel when entering the information to the electronic format. Moreover, they introduced various types of controls which are specifically designed to avoid input errors.
The existence of systematic rather than random processing errors – When involving manual processing system, there is a chance to make errors because humans are processing transactions and may make random mistakes. However, in automatic processing systems, handle all transactions in a same manner.
The lack of an audit trail – Generally, the process of entering data is done electronically. In many situations, hard copy only the final output of processing. Moreover, it affects the audit team in the position of not having the facility to view a paper trail of the processing of transactions.
The possibility of inappropriate access to computer files and programs – The growth of information technology allow the chances to access computer files and important programs. In preventing those behaviors, client needs to implement strong security or password for accessing the important files. In addition, they must monitor periodically who access the files and programs.
The reduced human involvement in the processing of transactions – The use of information technology reduces human participation in processing the transactions.
For example: Activities performed by human can also be done through computer programs easily. Moreover, this will save time and cost.