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.

Recognize the impact of actuarial assumptions on pension obligations and expenses.

Identify the effects of discount rates on pension obligations and expenses.

Understand the regulatory framework governing pension plans, including ERISA requirements.

Comprehend how pension funding affects an employer's balance sheet and pension expense.

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Definitions:

Need-Threat Model

A psychological framework that explains how individuals respond to situations that threaten their essential needs.

Sorority

A social organization primarily for female students in colleges or universities, dedicated to personal development, community service, and forming social bonds.

Social Loneliness

A feeling of isolation or disconnectedness from others, often stemming from a perceived lack of meaningful social relationships.

Emotional Loneliness

A feeling of solitude or detachment arising from a lack of close or intimate relationships.