Which of the Following Is Not a Problem Associated with the Use

question 59

Multiple Choice

Which of the following is not a problem associated with the use of test data for computer-audit purposes?

• A)Auditing through the computer is more difficult than auditing around the computer.
• B)It is difficult to design test data that incorporate all potential variations in transactions.
• C)Test data may be commingled with live data causing operating problems for the client.
• D)The program with which the test data are processed may differ from the one used in actual operations.

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Definitions:

Allocative Efficiency

A state of resource allocation where it is impossible to make any one individual better off without making someone else worse off, effectively maximizing overall social welfare.

Productive Efficiency

A situation where an economy or entity cannot produce more of one good without reducing the output of another good, indicating optimal resource allocation.

Monopoly Power

Monopoly power refers to the ability of a firm to control market prices and production, typically due to lack of competition in the marketplace.

Product Variety

The assortment of different products or services offered by a firm or available in a market.