A Disadvantage of the Integrated Test Facility Approach to a Computer-Assisted

question 27

Multiple Choice

A disadvantage of the integrated test facility approach to a computer-assisted audit is:

• A)it does not overcome the limitations of the use of test data.
• B)it is disruptive to the client.
• C)there is a risk that errors could be created in the client's data.
• D)all the above are limitations.

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Definitions:

Long-Term Note

A debt security that matures in more than one year and can provide interest income over its term.

Current Ratio

A financial ratio indicating a firm's capacity to settle short-term debts using its current assets.

Operating Cycle

The duration it takes for a company to purchase inventory, sell products or services, and collect cash from customers.

Collect Cash

The process of receiving cash in exchange for goods or services rendered, contributing to a company's cash inflows.