Explain how transactions are audited in an electronic data interchange environment
Firms using electronic data interchange maintain an electronic log of each transaction as it moves from receipt to translation to communication of the message. This transaction log restores the audit trail that was lost because no source documents exist. Verification of the entries in the log is part of the audit process.
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When using the periodic inventory method, which of the following generally would NOT be separately accounted for in the computation of cost of goods sold?
a. Trade discounts applicable to purchases during the period b. Cash (purchase) discounts taken during the period c. Purchase returns and allowances of merchandise during the period d. Cost of transportation-in for merchandise purchases during the period
Answer the following statements true (T) or false (F)
The Litigation Reform Act of 1995 requires that an audit include procedures designed to guarantee that illegal acts that would materially affect financial statements will be detected.
Define the terms industry, category, and customer need
What will be an ideal response?
In ________, the neutral third party attempts to help the parties draft agreements
A) neutral case evaluation B) arbitration C) litigation D) mediation