The ________ Procedure for Auditing Computer Process Controls Uses a Hypothetical

question 97

Multiple Choice

The ________ procedure for auditing computer process controls uses a hypothetical series of valid and invalid transactions.

• A)concurrent audit techniques
• B)test data processing
• C)integrated test facility
• D)dual process

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Definitions:

ROE

Return on Equity; a financial ratio indicating the profitability of a company by comparing net income to shareholders' equity.

EBIT

Earnings Before Interest and Taxes, a measure of a company's profitability excluding interest and income tax expenses.

Total Leverage

The combined effect of using both operating leverage and financial leverage on a company's earnings before interest and taxes (EBIT).

Variable Cost Ratio

The proportion of variable costs to sales or production output, indicating how variable costs change with changes in output.