Auditors Need to Be Imaginative to Identify All Possible Paths

question 25

Multiple Choice

Auditors need to be imaginative to identify all possible paths through the AIS.Which of the following sets of test data do they use?

• A)Historical test data from systems development.
• B)Realistic transactions to test all computational paths generated by the auditors.
• C)Realistic transactions based on good accounting practice that test the interface between the work procedures and the AIS.
• D)All of the options are correct.

---

Definitions:

Motion to Dismiss

A formal request to a court to dismiss a case on the grounds that it lacks basis for a lawsuit or is improperly filed.

Buy-and-Sell Agreement

A legally binding agreement determining what happens to a partner's share of a business in the event of that partner's death or departure.

Coyle v. Schwartz

A specific legal case, the context and jurisdiction of which would define its relevance and implications in law.

Consent Restraints

Legal restrictions or limitations that individuals agree to voluntarily, often within the context of contracts or agreements to restrict certain actions.