The Primary Purpose of a Generalized Computer Audit Program Is

question 57

Multiple Choice

The primary purpose of a generalized computer audit program is to allow the auditor to

• A) Use the entity's employees to perform routine audit checks of the electronic data processing records that otherwise would be done by the auditor's staff accountants.
• B) Test the logic of computer programs used in the entity's electronic data processing systems.
• C) Select larger samples from the entity's electronic data processing records than would otherwise be selected without the generalized program.
• D) Independently process electronic data processing records.

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Definitions:

Marketable Trading Investments

Financial assets that are purchased with the intention of selling them in the short term to profit from price fluctuations.

Unrealized Loss

A decrease in the value of an investment that has not yet been sold and therefore not officially recorded as a loss in the accounting records.

Realized Losses

Refers to the loss recognized when assets are sold for a price lower than their original purchase price.

Fair Value Through Profit

A method where financial assets are revalued to their current market prices on the balance sheet, and fluctuations are reported in the profit or loss statement.