The Audit Approach in Which the Auditor Runs His or Her

question 56

Multiple Choice

The audit approach in which the auditor runs his or her own program on a controlled basis to verify the client's data recorded in a machine language is:

• A)the test data approach.
• B)called auditing around the computer.
• C)the generalized audit software approach.
• D)the microcomputer-aided auditing approach.

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Definitions:

Capital Cost Allowance

A tax deduction in some jurisdictions that allows businesses to claim depreciation on tangible capital assets as an expense against taxable income.

Cost-Cutting Project

An initiative aimed at reducing expenses in order to improve profitability.

Reduction in Costs

Efforts or strategies implemented to decrease expenses and improve efficiency in a business operation.

Sunk Cost

A cost that has already been incurred and cannot be recovered, which should not influence future business decisions.