What criteria should a member use to determine whether a client’s information system is unrelated to its financial statements or accounting records?
Information systems that produce information that is reflected in the amounts and disclosures in the client’s financial statements, used in determining such amounts and disclosures, or used in effecting internal control over financial reporting are considered to be related to the financial statements and accounting records. However, information systems that are used only in connection with controlling the efficiency and effectiveness of operations are considered to be unrelated to the financial statements and accounting records.
Related Questions
- How does License Distribution Service determine the maintenance expiration date from an invoice in our accounting system?
- What criteria are used to determine whether or not a system needs to be interfaced into the UI-Integrate system?
- What are the most important criteria when selecting an accounting software system?
