Inserting a Dummy Entity in a Company's System;processing Test Transactions

question 75

Multiple Choice

Inserting a dummy entity in a company's system;processing test transactions to update that will not affect actual records is an example of

• A)integrated test facility.
• B)snapshot technique.
• C)system control audit review file.
• D)audit hooks.

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Definitions:

Depreciation Charges

The allocation of the cost of a tangible asset over its useful life for tax and accounting purposes.

Depreciation Conventions

Methods established by tax authorities to determine how much depreciation expense can be deducted, and when, for tax purposes.

Taxable Income

The portion of an individual's or entity's income that is subject to income tax after adjustments, deductions, and exemptions are accounted for.

Insurance Proceeds

Money received from an insurance claim, representing compensation for damages, losses, or liability coverage.