When evaluating internal control of an entity that processes revenue transactions on the Internet, an auditor would be most concerned about the
A) Potential for computer disruptions in recording sales.
B) Lack of sales invoice documents as an audit trail.
C) Frequency of archiving and data retention.
D) Inability to establish test data.

Question

Quizplus · Accepted Answer

When processing revenue transactions on the Internet, there is an increased potential for computer disruptions in recording sales, such as system glitches, hacking, or malware. This can result in inaccurate or incomplete recording of revenue transactions or even loss of data, which can compromise the reliability of internal controls. Therefore, auditors would be most concerned about the potential for computer disruptions as a threat to the effectiveness of internal controls.

When Evaluating Internal Control of an Entity That Processes Revenue