Auditing by Testing the Input and Output of an IT

question 18

Multiple Choice

Auditing by testing the input and output of an IT system instead of the computer program itself will:

• A) detect all program errors, regardless of the nature of the output.
• B) not detect program errors which do not show up in the output sampled.
• C) not provide the auditor with confidence in the results of the auditing procedures.
• D) provide the auditor with the same type of evidence.

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Definitions:

Consumption

Spending by households on goods and services, with the exception of purchases of new housing.

Money Balances

The total amount of money held by individuals or entities in the form of cash or bank deposits.

Wealth Redistribution

The transfer of income and wealth from some individuals to others by means of a social mechanism such as taxation, public services, or welfare.

Inflation

The pace at which overall costs for products and services increase, diminishing the buying power.