During the current year being audited, Hitech, Inc. changed from a conventional payroll punch clock to a computerized payroll time system. Factory employees now record time in and out with magnetic cards and the IT system automatically updates all payroll records. Because of this change:
A. the potential for payroll related fraud has been diminished.
B. without paper clock cards, part of the audit trail has been altered.
C. internal control has improved.
D. the auditor must audit through the computer.
Answer: B
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a. Closed-ended b. Probing c. Open-ended d. Leading
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Indicate whether the statement is true or false
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