Question

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

Answer 1

Answer:

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

Explanation:

The audit trail is a log that chronologically records documentary evidence of relevant activities and procedures.

Before the IT payroll system was adopted, an audit trail was already established. Since the new system reduces paperwork, it will also change the audit trail. The new system will probably reduce the audit trail.