Matthew Corp.has changed from a system of recording time worked on clock cards to a computerized payroll system in which employees record time in and out with magnetic cards.The computerized system automatically updates all payroll records.Because of this change,
A)A generalized computer audit plan must be used.
B)Part of the audit trail is altered.
C)The potential for payroll-related fraud is diminished.
D)Transactions must be processed in batches.

Question

Quizplus · Accepted Answer

Part of the audit trail is altered because the method of recording time worked has changed from clock cards to magnetic cards. Auditors should review the controls around the new system to ensure that the changes will not affect the quality of data maintained in the system.