State Whether the Following Are True or False in Relation

question 25

Short Answer

State whether the following are true or false in relation to computer assisted audit techniques
a. The use of CAAT's enables auditors to examine large populations of data
b. Auditors use test data to test controls within the client's computer system
c. Modern software makes the use of CAATs cheap and easy to do so audit staff don't need any special training
d. Embedded software can provide continuous monitoring of client data

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Definitions:

Investment Center

A segment or area of a business responsible for its own revenue, expenses, and assets, and its performance is measured by its return on investment.

Fixed Expenses

These are costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Return On Investment

A measure used to evaluate the efficiency of an investment or compare the efficiencies of several different investments.

Residual Income

The amount of income that an entity has after all costs and expenses, including the cost of capital, have been deducted.