Which of the Following Is a Significant Difference Between the Test

question 38

Multiple Choice

Which of the following is a significant difference between the test data (test deck) approach and an integrated test facility (ITF) ?

• A)ITFs are processed on a live run basis while test data (test deck) can only be processed on a 'test run' basis.
• B)Test data (test deck) techniques test general controls while ITF techniques test application controls.
• C)ITF techniques test programmed application controls while test data (test deck) techniques test both programmed and non-programmed application controls.
• D)The auditor establishes a dummy entity on the client's system for the ITF approach while a dummy entity is not required for the test data (test deck) approach.

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Definitions:

After-Tax Discount Rate

The rate of return on an investment after accounting for taxes, used in net present value calculations to determine the value of future cash flows.

Income Tax Rate

The rate at which income is taxed for individuals or corporations.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in an equal yearly amount.

Renovation Cost

The total expenses incurred during the process of improving or updating a property.