Auditors Have Several Techniques Available to Them to Test Computer-Processing

question 7

Multiple Choice

Auditors have several techniques available to them to test computer-processing controls.An audit technique that immediately alerts auditors of suspicious transactions is known as

• A)a SCARF.
• B)reperformance.
• C)the snapshot technique.
• D)an audit hook.

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Definitions:

Common Stock

A form of corporate equity ownership, representing a claim on a portion of the company’s assets and earnings.

Stock Sale

The transaction or process of selling shares in a company to investors, transferring ownership in exchange for capital.

Percent Ownership

The percentage of a company or asset owned by an investor or group of investors, indicating the extent of their control or influence.

Stock Issuance

The process by which a company distributes new shares to investors, thereby raising capital.