An Auditor Sets an Embedded Audit Module to Flag All

question 60

Multiple Choice

An auditor sets an embedded audit module to flag all credit transactions in excess of $3,000.The flag causes the system state to be recorded before and after each transaction is processed.The auditor is using

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

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Definitions:

Gross Profit

The profit a company makes after deducting the costs associated with making and selling its products or the costs associated with providing its services.

FIFO

"First-In, First-Out," an inventory valuation method where the cost of goods sold is based on the oldest inventory items.

Lower Of Cost

Lower of Cost or Market (LCM) is an accounting principle that values inventory at the lower of its historical cost or current market value.

Inventory Value

The total cost or market value of all the goods and materials held by a company for the purpose of resale or production.