When an Auditor Tests the Internal Controls of a Computerized

question 706

Multiple Choice

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

• A) Test data are coded to a dummy subsidiary so they can be extracted from the system under actual operating conditions.
• B) Test data programs need not be tailor-made by the auditor for each client's computer applications.
• C) Test data programs usually consist of all possible valid and invalid conditions regarding compliance with internal controls.
• D) Test data are processed with the client's computer and the results are compared with the auditor's predetermined results.

Understand the concepts of empowerment and its significance in organizational management.

Differentiate between centralization and decentralization within an organizational context.

Comprehend the process of delegation, including its challenges and benefits.

Distinguish between various organizational structures (e.g., functional, divisional, matrix) and their implications.

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Definitions:

Manifest Content

In psychoanalytic theory, the literal surface content of a dream, as opposed to its hidden or symbolic meaning.

Repressed Memories

Memories suppressed without conscious effort due to their connection with significant trauma or stress.

Unconscious Wishes

Desires or thoughts that reside within the unconscious mind, influencing behavior without the individual's awareness.

Inferiority Complex

A psychological condition in which a person feels a deep sense of inadequacy and lacking in comparison to others.