The Audit Practice of "Auditing Around the Computer" Is Also

question 59

Multiple Choice

The audit practice of "auditing around the computer" is also referred to as:

• A)The white box approach
• B)The black box approach
• C)Computer-assisted audit techniques (CAATs)
• D)The gray box approach

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Definitions:

Acquisition-Date Fair Value

The market value of an asset or liability at the exact date an acquisition is completed, used for accounting purposes.

Noncontrolling Interest

The portion of equity in a subsidiary not attributable, directly or indirectly, to a parent company.

Net Income

A company's final profit after total revenue has had taxes, costs, and other expenses removed.

Income Statement

A financial statement that reports a company's revenues, expenses, and profits over a specified period, showing how the revenue is transformed into net income.