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

question 60

Short Answer

Auditors do not rely on detailed knowledge of the application's internal logic when they use the __________________________ approach to auditing computer applications.

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Definitions:

Equivalent Units

A term used in cost accounting to denote a conversion measure that expresses the amount of work done on partially completed units in terms of fully completed units.

Conversion Cost

The cost associated with converting raw materials into finished products, typically including labor and overhead expenses.

Equivalent Unit

A metric used in cost accounting to express the amount of work done on incomplete units as a proportion of work done on complete units.

Factory Overhead

Refers to the indirect costs associated with manufacturing, excluding direct materials and direct labor costs.