When Using the Test Data Approach

question 3

Multiple Choice

When using the test data approach,

• A) test data should include data that the client's system should accept or reject.
• B) application programs tested by the auditor's test data must be different from those used by the client throughout the year.
• C) select data may remain in the client system after testing.
• D) None of the above statements is correct.

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Definitions:

Price Setting

The process by which businesses determine the selling price of their products or services, taking into account factors like costs, market demand, and competition.

Differential Analysis

An approach to decision making that focuses on the costs and benefits that change between decision alternatives.

Income Change

A variation in the amount of earnings a business generates over a period.

Alternative Course

A different plan or method that could be chosen instead of the original or current one.