Processing Auditor Test Data Using the Client's Software Application _______

question 6

Multiple Choice

Processing auditor test data using the client's software application _______.

• A)will allow the auditor to verify that the software application is functioning as designed
• B)will allow the auditor to verify manual controls within the software application are functioning as designed
• C)may corrupt the client's system, and should not be attempted
• D)should be performed without the knowledge of the client's senior management

---

Definitions:

Date of Payment

The date of payment refers to the specific day a payment was made or is scheduled to be made for transactions, bills, or invoices.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Retained Earnings

The portion of net earnings not distributed as dividends to shareholders but retained by the company to reinvest in its core business or to pay debt.

Net Income

The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue.