Which of the Following Is Not an Advantage of the Test

question 19

Multiple Choice

Which of the following is not an advantage of the test data approach?

• A)It is simple to use.
• B)It is a way of auditing 'through the computer'.
• C)There is no examination of the documentation actually processed by the system.
• D)There is not much disruption to the client's computer system.

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Definitions:

Average Annual Gross Receipts

An average of a business's total gross income over a specified period, often used to determine tax reporting requirements or eligibility for small business tax concessions.

Complete Liquidation

The process of closing a business by selling all assets, paying off creditors, and distributing the remaining assets to shareholders.

Capital Gain

The profit from the sale of an asset or investment exceeding its purchase price, which is subject to taxation.

Ownership Interest

Refers to an individual's or entity's legal right to possess, use, and dispose of property or assets.