What Is the Test Data Technique

question 3

Short Answer

What is the test data technique?
A. It uses a set of input data to validate system integrity.
B. It requires auditors to prepare both valid and invalid data to examine critical logics and controls of the system
C. It is an automated technique that enables test data to be continually evaluated during the normal operation of a system
D. A and B are correct
E. None of the above is correct

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Definitions:

Operating Income

This is the profit realized from a business's operations, after deducting operating expenses such as wages and cost of goods sold but before interest and taxes.

Acceptable Operating Income

The level of earnings from core operations deemed satisfactory by management, often in line with industry benchmarks or internal targets.

DuPont Formula

A method for analyzing components of return on equity to understand what factors are driving or affecting it.

Profit Margin

A financial metric used to evaluate a company's financial health by revealing the percentage of revenue that exceeds the costs associated with making or selling its products or services.