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

---

Definitions:

Rights Offering

Rights offering is a financial opportunity provided to existing shareholders to purchase additional shares directly from the company at a predetermined price, usually lower than the market price, before the shares are offered to the public.

Subscription Price

The price at which existing shareholders are allowed to purchase new shares of a company, often during a rights offering.

Stock Price

The current price at which a share of a company is being bought or sold in the financial markets.

General Cash Offering

A public sale of securities in which the proceeds are used to fund general business activities and not earmarked for a specific project.