The Auditor's Objective in Determining Whether the Client's Computer Program

question 46

Multiple Choice

The auditor's objective in determining whether the client's computer program correctly processes valid and invalid transactions is accomplished through the

• A) test data approach.
• B) generalized audit software approach.
• C) microcomputer-aided auditing approach.
• D) generally accepted auditing standards.

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Definitions:

Note

A note is a brief record of facts, topics, or thoughts, written down as an aid to memory.

Dishonored

A term often used in finance to describe the refusal of a bank to pay a check or draft presented against insufficient funds.

Payable

Refers to an amount of money that must be paid, typically in the context of bills or debts.

Insurance Agent

a professional who sells, solicits, or negotiates insurance policies on behalf of an insurance company to clients.