An Auditor Sets an Embedded Audit Module to Record All

question 40

Multiple Choice

An auditor sets an embedded audit module to record all credit transactions in excess of $5,000 and stores the data in an audit log.The auditor is using

• A)audit hooks.
• B)the snapshot technique.
• C)a system control audit review file.
• D)continuous and intermittent simulation.

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Definitions:

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows, influencing investment decisions and valuation.

Compounded Interest

Interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan.

Effective Annual Rate

The real interest rate on an investment or loan, taking into account the effect of compounding interest as opposed to just the nominal or stated rate.

Compounded Monthly

Interest on a loan or investment calculated monthly on both the initial principal and the accumulated interest from previous periods.