14.Which of the following is true about the definition of revenue?
A. Revenue is income generated both from ordinary and other activities of the entity.
B.Revenue is income generated from ordinary activities of the entity.
C.Revenue includes gains on disposal of property, plant and equipment not in the course of the ordinary activities of the entity
D.Revenue is defined as other items that meet the definition of income that does not arise in the course of ordinary activities of the entity.
15. lf an ITGC deficiency is identified, what sequence of steps should occur in determining necessary communications to management?
l. Determine if compensating controls exist to address the IT risk
II. Understand the identified ITGC deficiency in detail
IIl. Determine the severity of the ITGC deficiency for potential communication with those charged with governand>
IV.Reconsider the nature, timing and extent of our audit procedures Select the correct response.
A.I,IV, II, III
B.II, III,IV, I
C.IV.III. II.I
D.II, I,III,IV
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The correct definition of revenue according to the principles of accounting standards is that:
B. Revenue is income generated from ordinary activities of the entity.
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When an IT general control (ITGC) deficiency is identified, the sequence of steps for determining necessary communications to management typically follows this order:
B. II, III, IV, I
So, the correct sequence of actions would be to:
II. Understand the identified ITGC deficiency in detail
III. Determine the severity of the ITGC deficiency for potential communication with those charged with governance
IV. Reconsider the nature, timing, and extent of our audit procedures
I. Determine if compensating controls exist to address the IT risk
Thus, the correct response is B. II, III, IV, I.
