Which of the Following Is True of Generalized Audit Software

question 60

Multiple Choice

Which of the following is true of generalized audit software packages?

• A) They can be used only in auditing online computer systems.
• B) They can be used on any computer without modification.
• C) They each have their own characteristics that the auditor must carefully consider before using in a given audit situation.
• D) They enable the auditor to perform all manual test procedures less expensively.

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Definitions:

Cobb-Douglas Production Function

The Cobb-Douglas Production Function is an economic model representing the relationship of an output to inputs, typically showing how labor and capital contribute to the production process in a way that reflects diminishing returns.

Returns to Scale

The rate at which output increases as inputs are increased proportionally in the production process.

Logarithmic Variable Cost Function

A formula representing the variable costs of production as a logarithmic function, indicating how these costs evolve as production volume changes.

Increasing Rate

Often refers to a situation where the rate of change of a variable is accelerating; a concept applicable in various economic, financial, and mathematical contexts.