What risk arises due to the automatic initiation and execution of transactions in a Computerized Information Systems (CIS) environment?

Decreased processing speed of transactions.

Increase in human-generated errors.

Security issues due to instant processing.

Why is auditor participation in System Development Life Cycle (SDLC) crucial in a CIS environment?

To eliminate the need for audit trails.

To ensure that manual controls are sufficient.

To integrate IT skills into the audit process.

To replace the need for Computer Assisted Audit Techniques (CAAT).

What is the primary reason for using Computer Assisted Audit Techniques (CAAT) in auditing CIS environments?

To replace auditors with computer systems.

To address the shift from manual to system-generated errors.

To enable auditors to process transactions manually.

What role does management supervision play in a CIS environment's internal control?

Decreasing the need for internal controls.

Reducing the risk of fraud and error.

Increasing reliance on manual controls.

How does the principle of comparability influence the preparation of reports?

It emphasizes using complex language.

It highlights significant variations in information.

It promotes the use of routine details.

It reduces the need for management involvement.

What is the primary purpose of applying the principle of exception while preparing reports?

To include all possible details.

To highlight significant variations.

To provide a thorough overview.

To create an attractive design.

What is the primary advantage of effective communication in accounting reports?

It reduces the need for managerial actions.

It conveys untested impressions and guesses.

It ensures decisions are based on facts.

It eliminates the need for accounting reports.

What should the style of presenting a report prioritize to attract user attention?

Complex language for a professional tone.

Consistent use of technical terminology.

Exclusive use of written content.

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