Processing Data Through the Use of Simulated Files Provides an Auditor

question 262

Multiple Choice

Processing data through the use of simulated files provides an auditor with information about the operating effectiveness of controls. One of the techniques involved in this approach makes use of:

• A) Controlled reprocessing.
• B) An integrated test facility.
• C) Input validation.
• D) Program code checking.

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Definitions:

Salvage Value

The estimation of an asset's value at the end of its period of utility.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, representing the wear and tear or obsolescence of the asset.

Service Life

The expected period during which an asset is considered useful and productive in a business operation, also known as useful life.

Units-Of-Production

A depreciation method that allocates the cost of an asset based on its usage, production, or units of output over its useful life.