Which of the Following Computer-Assisted Auditing Techniques Processes Actual Client

question 34

Multiple Choice

Which of the following computer-assisted auditing techniques processes actual client input data (or a copy of the real data) on a controlled program under the auditor's control to periodically test controls in the client's computer system?

• A)Test data method
• B)Embedded audit module
• C)Integrated test facility
• D)Parallel simulation

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Definitions:

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and subsequently adjusted for the investor's share of the investee's profits or losses.

Voting Stock

Shares of a company that grant the shareholder the right to vote on corporate matters and elect the board of directors.

Net Loss

Net loss occurs when a company's expenses exceed its revenues during a specific accounting period, resulting in a negative profit.

Dividend Revenue

Income received by investors from owning shares in a company, typically paid out from the company's profits.