The existence of advanced automated systems affects the audit process.Which of the following characteristics is an indicator of the presence of an advanced automated information system?
A)electronic data interchange systems for purchase orders,sales invoices,and payments
B)use of packaged software to process sales both locally and across Canada
C)use of customer relationship management systems to manage sales information
D)numerically controlled equipment used in the manufacturing process

Question

Quizplus · Accepted Answer

Electronic data interchange systems for purchase orders, sales invoices, and payments are an indicator of the presence of an advanced automated information system. This system allows for the automatic transfer of data between two or more computer systems, reducing the need for manual intervention in the audit process. The use of packaged software and customer relationship management systems are also indicators, but they are not as specific to the automation of data transfer as electronic data interchange systems. The use of numerically controlled equipment is a characteristic of a computer-integrated manufacturing system, but it does not necessarily indicate the presence of an advanced automated information system.

The Existence of Advanced Automated Systems Affects the Audit Process