A Primary Advantage of Using Computer-Assisted Audit Techniques (CAATs)packages to Audit

question 77

Multiple Choice

A primary advantage of using computer-assisted audit techniques (CAATs) packages to audit the financial statements of a client that uses computerized information systems is that the auditor may

• A)access information stored on computer files even with a limited understanding of the client's hardware and software features.
• B)consider increasing the use of substantive tests of transactions in place of analytical procedures.
• C)substantiate the accuracy of data by using self-checking digits and hash totals.
• D)reduce the level of required tests of controls to a relatively small amount.

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Definitions:

Aggregate Supply

The aggregate output of goods and services that companies in a national economy aim to market within a given timeframe.

Classical Economic Theory

A broad school of thought in economics that emphasizes the role of market forces and the flexibility of prices in achieving economic equilibrium, advocating minimal government intervention.

Stagflation

A situation in an economy where the inflation rate is high, the economic growth rate slows, and unemployment remains steadily high.

Output

The total amount of goods and services produced by an economy, business, or machine over a specific period of time.