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A company migrates ERP mid-year. Which audit consideration becomes MOST sensitive?
ACut-off and data conversion completeness between legacy and new systems
BYear-end inventory observation
CTranslation of foreign currency
DCustomer confirmation responses
Answer & Solution
Correct answer: C. Translation of foreign currency
1. Mid-year migration creates two distinct control environments and a hand-off.
2. Data conversion completeness and cut-off across the migration date are the highest-risk areas.
3. Other procedures are routine year-end concerns, not migration-specific.
_Source: ICAI BoS CA Final Paper 3, Ch 4 "Special Aspects of Auditing in an Automated Environment"_
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