When Testing a Computerized Accounting System, Which of the Following

question 53

Multiple Choice

When testing a computerized accounting system, which of the following is false regarding the test data approach?

• A)The test data need to consist of only those valid and invalid conditions in which the auditor is interested.
• B)Only one transaction of each type needs be tested.
• C)Test data are processed by the entity's computer programs under the auditor's control.
• D)The test data must consist of all possible valid and invalid conditions.

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Definitions:

Expected Rate of Return

The anticipated amount of profit or loss an investor expects to achieve on an investment.

Interest Rate

The Interest Rate is the percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Expected Rate of Return

The anticipated return on an investment, considering both the probability and the amount of potential returns.