When an Auditor Tests a Computerized Accounting System, Which of the Following

question 4

Multiple Choice

When an auditor tests a computerized accounting system, which of the following is true of the test data approach?

• A)Test data are processed by the entity's computer programs under the auditor's control.
• B)Test data must consist of all possible valid and invalid conditions.
• C)Testing a program at year end provides assurance that the entity's processing was accurate for the entire year.
• D)Several transactions of each type must be tested.

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Definitions:

Implied-In-Law

A legal obligation arising not from explicit agreement but from a duty inherent in social or legal traditions.

Without Reserve

An auction term indicating that an item will be sold to the highest bidder regardless of the price, without any minimum bid restriction.

With Reserve

Pertains to an auction or sale condition where the item is sold only if it meets a minimum bid or criteria set by the seller.

Auction

A public sale in which goods or property are sold to the highest bidder.