AICPA Exam CPA-Auditing Topic 3 Question 97 Discussion

Actual exam question for AICPA's CPA-Auditing exam

Question #: 97
Topic #: 3

Which of the following characteristics distinguishes computer processing from manual processing?

AComputer processing virtually eliminates the occurrence of computational error normally associated with manual processing.

BErrors or irregularities in computer processing will be detected soon after their occurrences.

CThe potential for systematic error is ordinarily greater in manual processing than in computerized processing.

DMost computer systems are designed so that transaction trails useful for audit purposes do not exist.

Show Suggested Answer

Suggested Answer: A

Choice 'a' is correct. Computer processing virtually eliminates the occurrence of (random) computational errors normally associated with manual processing. This is a major benefit of computer processing over manual processing.

Choice 'b' is incorrect. Depending on human involvement and review, errors or irregularities in computer processing may not be detected quickly.

Choice 'c' is incorrect. The potential for systematic errors (e.g., incorrect programming, incorrect data entry) is greater in a computerized system due to reduced human involvement in processing.

Choice 'd' is incorrect. Only poorly designed computerized systems provide no audit trail capabilities.

by Johnna at Sep 14, 2024, 02:17 AM

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2 months ago

D? Really? That's just nonsense. Computers leave tons of audit trails, that's like IT 101. Someone's trying to trick us here.

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Kris

1 months ago

C) The potential for systematic error is ordinarily greater in manual processing than in computerized processing.

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Eladia

2 months ago

B) Errors or irregularities in computer processing will be detected soon after their occurrences.

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Alberto

2 months ago

A) Computer processing virtually eliminates the occurrence of computational error normally associated with manual processing.

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3 months ago

I think B is the way to go. Computers can detect errors quickly, which is super important for ensuring the integrity of the data.

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Mable

2 months ago

I think C is also a distinguishing characteristic, as manual processing is more prone to systematic errors.

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Adolph

2 months ago

True, computers are great at quickly detecting errors, which is crucial for accuracy.

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Paola

2 months ago

But A is also important, as it helps reduce computational errors that can occur in manual processing.

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Margarett

2 months ago

I agree, B is definitely a key advantage of computer processing.

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Nelida

3 months ago

A is clearly the correct answer. Computers are much more accurate than humans at calculations, which is a key advantage of computerized processing.

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Rodolfo

2 months ago

Yes, that's why computer processing virtually eliminates computational errors.

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Trinidad

2 months ago

I agree, computers are definitely more accurate than humans at calculations.

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