a. An IT system is designed to ensure that management possesses the information it needs to carry out its functions through the integrated actions of (1) Data-gathering, analysis, and reporting functions. (2) A computer-based information retrieval and decision-making system. (3) Statistical and analytical procedures functions. (4) Production budgeting and sales forecasting activities. b. Which of the following conditions will not normally cause the auditor to question whether material misstatements exist? (1) Bookkeeping errors are listed on an IT-generated error listing. (2) Differences exist between control accounts and supporting master files. (3) Transactions are not supported by proper documentation. (4) Differences are disclosed by confirmations. c. Assume that an auditor estimates that 10,000 checks were issued during the accounting period. If an automated application control that does a limit check for each check request is to be subjected to the auditors test data approach, the sample should include (1) Approximately 1,000 test items. (2) A number of test items determined by the auditor to be sufficient under the circumstances. (3) A number of test items determined by the auditors reference to the appropriate sampling tables. (4) One transaction