Relevant Application Tools
Many companies use _____ systems in their consolidation process.
a) GL detail
b) cardiovascular
c) application
d) software
It is imperative to acknowledge that we need to understand how data flows into the general ledger from business processes and their applications in order to identify potential gaps or risks of material misstatement as the data flows from one system to another. TRUE OR FALSE
TRUE
In order to understand and evaluate management’s selection and application of accounting principles we consider significant changes in the entity’s accounting principles, financial reporting policies, or disclosures and the reasons for such changes. TRUE OR FALSE
TRUE
Financial Reporting process typically includes _____
Subsidiary Ledger, Pre and Post Closing General Ledger, and Consolidating Trial Balance.
Each of these items could be a separate application system used in the financial reporting process.
Different inputs and data flows or interfaces include:
systemic and manual flow of transactions
interfaces or data flows from subsidiary ledgers to the general ledger(s),
and Interfaces or data flows from the general ledger(s) to reporting packages and/or the consolidating trail balance.
The effect of significant accounting principles in controversial or emerging areas for which there is a lack of authoritative guidance or consensus should not be considered. TRUE OR FALSE
FALSE
An example of a common consolidation systems utilized by clients is _________.
a) Hyperion
b) Consolidation Systems
c) Google
d) Omnia
Inquiry and speaking with management is sufficient audit evidence. TRUE OR FALSE
FALSE
The accounts or disclosures for which _____is used in the application of significant accounting principles, especially in determining management’s estimates and assumptions should be considered.
a) journal entries
b) client