The Audit Practice of "Auditing Around the Computer" Is Also

question 59

Multiple Choice

The audit practice of "auditing around the computer" is also referred to as:

• A)The white box approach
• B)The black box approach
• C)Computer-assisted audit techniques (CAATs)
• D)The gray box approach

---

Definitions:

Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Income Statement

A financial statement that reports a company's revenues, expenses, and profits over a specific period.

Consignment

A business arrangement in which goods are left in the possession of another party to sell, with payment to the consignor occurring after sale.

Consignor

The Consignor is the person or entity who owns goods that are sent to another party, known as the consignee, to sell on their behalf.