Auditing Standards Address the Importance of Understanding Both the Automated

Multiple Choice

Auditing standards address the importance of understanding both the automated and manual procedures that make up an organization's internal controls and consider how misstatements may occur, including all of the following, except:

A) How transactions are entered into the computer
B) How financial statement are printed from the computer
C) How nonstandard journal entries and adjusting entries are initiated, recorded, and processed
D) How standard journal entries are initiated, recorded, and processed