Which of the Following Best Describes Continuous Auditing

question 34

Multiple Choice

Which of the following best describes continuous auditing?

• A)Audit-related activities are peformed throughout the period under review.
• B)The full audit team remains on the client site for the entire fiscal year.
• C)The database extracts every 10^th transaction and flags it for audit review.
• D)Auditors can generate greater fees by increasing the amount of manual testing performed for the client.

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Definitions:

Interpretation

An expression of the meaning or significance of a wide variety of experiences, situations, data, events, judgments, conventions, beliefs, rules, procedures, or criteria.

Inference

Identifies and secures elements needed to draw reasonable conclusions; it forms conjectures and hypotheses, it considers relevant information, and it reduces or draws out the consequences flowing from data, statements, principles, evidence, judgments, beliefs, opinions, concepts, descriptions, questions, or other forms of representation.

Spontaneous Generation

The outdated belief that living organisms can arise from non-living matter without any biological process.

Disconfirmed

Refuted or shown to be false, especially in relation to hypotheses or beliefs.