An Example of a Program in Which the Audit Team

question 62

Multiple Choice

An example of a program in which the audit team would be most interested in testing automated application controls is a(n)

• A) Payroll processing program.
• B) Operating system program.
• C) Data management system software.
• D) Utility program.

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Definitions:

Inelastic

A characteristic of demand whereby a change in price leads to a lesser change in the quantity demanded, indicating low sensitivity to price changes.

Price Ceilings

Government-imposed limits on how high a price can be charged for a product, service, or commodity.

Equilibrium Price

The charge where the amount of merchandise supplied equals the amount consumers are willing to purchase.

Inelastic Demand

A situation where the demand for a product does not significantly change with a change in price.