Auditing and Assurance Services 9th Edition by Alvin Arens,Mark Beasley,Randy Elder

Exercise 3

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.