Which of the Following Is Not a Use of CAATs

question 24

Short Answer

Which of the following is not a use of CAATs in auditing?
A. Test of details of transactions and balances
B. Analytical review procedures
C. Fraud examination
D. Produce terms and conditions of employment

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Definitions:

Activity Method

A depreciation method where the asset’s expense is based on its usage or activity level, rather than the passage of time.

Unit Cost

The cost incurred by a company to produce, store, and sell one unit of a particular product or service.

Declining-Balance Method

A method of calculating depreciation that results in larger depreciation charges in the early years of an asset's life and smaller charges later on.

Straight-Line Method

A depreciation technique where an equal amount of depreciation expense is recognized for an asset over each year of its useful life.