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:

Revenue Function

A mathematical relationship describing how a firm’s total revenue changes with variations in output or sales.

Total Profits

The entirety of financial gains earned by a business after subtracting all costs and expenses from total revenues.

Advertising Costs

Costs associated with marketing a product, service, or brand to prospective buyers.

Profit Function

A mathematical representation showing the relationship between a firm's profits and its output or other relevant variables.