The Purpose of Test Data Is to Determine Whether

question 7

Multiple Choice

The purpose of test data is to determine whether

• A)The audit team's test data are consistent with the client's normal transactions.
• B)Controls operate as described in responses to internal control questionnaire items and program flowcharts.
• C)Every possible error is prevented or detected by the client's computer controls.
• D)All possible combinations of valid data are correctly processed.

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Definitions:

Total Cost

Represents the complete sum of all expenses incurred in the production of goods or services, including both fixed and variable costs.

ATC

Average Total Cost, refers to the total cost per unit of output, calculated by dividing the total cost by the quantity of output produced.

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing for full adjustment to any change.

Output

The total amount of goods or services produced by a person, machine, factory, country, etc., within a given period.