Three Common Techniques Auditors Use to Test Computer Programs Are

question 35

Multiple Choice

Three common techniques auditors use to test computer programs are:

• A)Test data, integrated test facilities, and parallel simulation
• B)Test data, edit checks, and integrated test facilities
• C)Test data, program change control, and parallel simulation
• D)Program change control, edit checks, and parallel simulation

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Definitions:

Weighted Average Method

An inventory valuation method that calculates the cost of goods sold and ending inventory based on the average cost of all inventory items.

Overhead Costs

Indirect costs incurred in the running of a business that cannot be directly attributed to any specific product or service.

Process Costing System

A method of costing used where identical or similar items are produced in mass, costs are accumulated for a fixed period and assigned to all units produced.

FIFO Method

"First In, First Out" inventory valuation method where goods purchased or produced first are sold or used first.