Auditing by Testing the Input and Output of an IT

question 20

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 that 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:

Discretionary Fiscal Policy

Government policies involving changes in taxation and spending levels, aimed at influencing economic conditions, including managing inflation, unemployment, and fostering economic growth.

Balance Budget

A financial statement in which revenues and expenditures are equal, resulting in no deficit or surplus.

GDP

The total market value or monetary sum of all final goods and services produced within a nation's boundaries during a defined timeframe is known as Gross Domestic Product.

Multiplier

In economics, a factor that quantifies the impact of an initial change in spending, income, or investment on the broader economy, amplifying the initial effect.