During the year being audited, the Matthews Corporation changed from a system of recording time worked on clock cards to an IT payroll system in which employees record time in and out with magnetic cards. The IT system automatically updates all payroll records. Because of this change ...

(a) a generalized computer audit program must be used.

(b) without paper clock cards, part of the audit trail is altered

(c) the potential for payroll-related fraud is diminished

(d) transactions must be processed in batches

Question

Business

Zaiden

17 August, 00:18

During the year being audited, the Matthews Corporation changed from a system of recording time worked on clock cards to an IT payroll system in which employees record time in and out with magnetic cards. The IT system automatically updates all payroll records. Because of this change ...

(a) a generalized computer audit program must be used.

(b) without paper clock cards, part of the audit trail is altered

(c) the potential for payroll-related fraud is diminished

(d) transactions must be processed in batches

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Answers (1)

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Rolando · Answer 1

Answer: This change will henceforth alter the audit trail.

Here the change is described by Matthews Corporation as they switch from clock cards to magnetic cards. Therefore, now everything is being recorded and thereby automatically updates all payroll.

Therefore, the correct option in this case (b) : without paper clock cards, part of the audit trail is altered