The Four Approaches to Through-The-Computer Auditing Include All but Which

question 46

Multiple Choice

The four approaches to through-the-computer auditing include all but which of the following:

• A)Use of embedded audit modules
• B)Testing of outputs to verify processing
• C)Computer program testing
• D)Validation of computer programs

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Definitions:

Normal Distribution Function

A statistical function that describes how the values of a variable are distributed, with most observations clustering around the mean and fewer observed in the tails.

Cumulative Normal Function

A statistical function that indicates the probability that a random observation that is drawn from a normal distribution falls within a certain range of values.

Sharpe Measure

A ratio used to evaluate the risk-adjusted return of an investment portfolio; it represents the excess return per unit of deviation in an investment.

Risk Adjusted Performance

An evaluation of an investment's return after accounting for the degree of risk that was taken to achieve it.