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:

Standard Deviation

A measure in statistics that quantifies the amount of variation or dispersion of a set of numeric values.

Sample Scores

Quantitative values or measurements obtained from a subset of a population for research or analysis purposes.

Representative

Something, such as a person or sample, that accurately reflects the larger group or whole it is intended to stand in for.

Sample Statistics

Numerical data that describe characteristics of a sample, a subset of the population being studied.