Tests of Controls in an Advanced Computerized Processing System

question 25

Multiple Choice

Tests of controls in an advanced computerized processing system

• A) can be performed using only actual transactions because testing simulated transactions does not provide relevant evidence.
• B) can be performed using actual transactions or simulated transactions.
• C) is impractical because many procedures within the computerized processing system leave no visible evidence of having been performed.
• D) is inadvisable because it may distort the evidence in real-time systems.

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Definitions:

Pricing Schedule

A pricing schedule lists the prices for goods or services, often varying based on quantities purchased, contract length, or buyer types, to accommodate different purchasing scenarios.

Quantity Ordered

The total number of units of a product or service that a customer commits to buying at a specific time.

Economic Order Quantity

A model used in inventory management to determine the optimal order quantity that minimizes the total cost of inventory, including ordering and holding costs.

Convenient Lot Size

The optimal quantity of inventory ordered or produced that balances operational efficiency with storage and handling costs.