Auditing standards address the importance of understanding both the automated and manual procedures that make up an organization's internal controls and consider how misstatements may occur, including all of the following, except:
A)How transactions are entered into the computer
B)How financial statement are printed from the computer
C)How nonstandard journal entries and adjusting entries are initiated, recorded, and processed
D)How standard journal entries are initiated, recorded, and processed

Question

Quizplus · Accepted Answer

Auditing standards address the importance of understanding both the automated and manual procedures that make up an organization's internal controls and consider how misstatements may occur. Options A, C, and D are all relevant methods that need to be addressed while auditing. However, option B of how financial statements are printed from the computer is not relevant to auditing in terms of internal controls and misstatements.

Auditing Standards Address the Importance of Understanding Both the Automated