As Opposed to a Manual Control,an Automated Control

question 48

Multiple Choice

As opposed to a manual control,an automated control

• A) Can never be circumvented.
• B) Should function consistently in the absence of program changes.
• C) Need not be tested by the auditor.
• D) Must be tested using the same techniques as a manual control.

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Definitions:

Semistrong Form

A form of the Efficient Market Hypothesis suggesting that all publicly available information is already reflected in stock prices, making it difficult to achieve superior gains through analysis.

Trading Volume

The total number of securities traded during a given period of time.

Passive Management

Buying a diversified portfolio, often a broad-based market index, without attempting to identify mispriced securities.

Index Fund

A mutual fund holding shares in proportion to their representation in a market index such as the S&P 500.