Which of the Following Testing Techniques Minimizes the Possibility That

question 4

Multiple Choice

Which of the following testing techniques minimizes the possibility that the auditors will contaminate a client's financial records?

• A)Test data.
• B)Integrated test facilities.
• C)Controlled programs.
• D)Tagging and tracing transactions.

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Definitions:

Consolidated Statement

A financial statement that aggregates the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries to reflect the total financial position and results of the group.

Financial Position

An entity's economic state, represented by its assets, liabilities, and equity at a given point in time.

Acquisition Differential

The gap between what is paid for an acquisition and the fair value of the clearly identified assets acquired.

Impairment Losses

Financial recognition of the reduced recoverable value of an asset, below its carrying amount on the balance sheet.