In Addition to Testing System Documentation, Auditors Should Test the Three

question 72

Multiple Choice

In addition to testing system documentation, auditors should test the three main functions of computer applications.Which of the following is not one of these functions?

• A)Output
• B)Input
• C)Processing
• D)Data Storage

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Definitions:

Cash Dividends

Payments made by a corporation to its shareholder members from its current or retained earnings.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

Direct Method

A method of preparing the cash flow statement in which actual cash flow information from the company’s operations segment is used, instead of adjustments to net income.

Direct Method

A means of presenting the cash flow statement where cash receipts and cash payments from operating activities are listed directly.