In: Accounting
Which of the following statements is most accurate?
a. ERP systems are commercial software packages that are sometimes called turnkey systems because they can be implemented by the user with little or no modification.
b. Substantive tests provide evidence focused on the system controls.
c. Public accounting firms that provide attest services are not allowed under SOX to offer IT advisory services.
d. Both small and large firms that have standardized information needs are potential customers for commercial software.
e. External auditors may rely on the work of internal auditors only if they report to the controller or the CEO of the client company.
The correct option is (d).
d. Both small and large firms that have standardized information needs are potential customers for commercial software.
Explanation:
This statement accurately reflects the broad applicability of commercial software solutions, such as Enterprise Resource Planning (ERP) systems, which can cater to the standardized information needs of both small and large firms. Commercial software packages are designed to address common business processes and can be tailored to fit the specific requirements of various organizations, regardless of their size.
The correct option is (d).