When an Auditor Tests a Computerized Accounting System, Which of the Following

question 635

Multiple Choice

When an auditor tests a computerized accounting system, which of the following is true of the test data approach?

• A) Several transactions of each type must be tested.
• B) Test data are processed by the client's computer programs under the auditor's control.
• C) Test data must consist of all possible valid and invalid conditions.
• D) The program tested is different from the program used throughout the year by the client.

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Definitions:

Buyer's Damages

Legal compensation sought by a purchaser when a seller fails to fulfill the terms of a contract, such as defects in goods or delays in delivery.

Defective Goods

Products that fail to meet quality or performance standards, often leading to consumer dissatisfaction or safety concerns.

Industry Value

The total market worth of a specific sector or industry, often calculated by combining the value of all involved companies and sales.

UCC Statute of Limitations

The time limit established by the Uniform Commercial Code within which a lawsuit must be filed to resolve various types of disputes, notably in commercial transactions.