When Auditors Do Not Rely on a Detailed Knowledge of the Application's

question 44

Multiple Choice

When auditors do not rely on a detailed knowledge of the application's internal logic,they are performing

• A)black box tests of program controls
• B)white box tests of program controls
• C)substantive testing
• D)intuitive testing

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Definitions:

Economic Recession

A period of significant decline in total output, income, employment, and trade in an economy, usually lasting from six months to a year.

Gentlemen's Agreements

Informal, non-binding agreements based on trust, honor, and the integrity of the parties, without any written documentation.

Cartel

An agreement among competing firms to control prices or limit production in a sector, often to maximize profits at the expense of consumers.

Economic Performance

An assessment of how well an economy is functioning, often evaluated through indicators such as GDP growth rate, unemployment rates, and inflation.