An Auditor Creates a Fictitious Customer in the System and Then

question 29

Multiple Choice

An auditor creates a fictitious customer in the system and then creates several fictitious sales to the customer.The records are then tracked as they are processed by the system.The auditor is using

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

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Definitions:

Total Liabilities

The sum of all financial obligations or debts that a company owes to outside parties at a given point in time.

Total Assets

The sum of all assets owned by a company, including current, fixed, tangible, and intangible assets, represented on the balance sheet.

Total Equity

Total equity represents the value left for shareholders after all liabilities have been subtracted from the total assets of a company.

Debt Ratio

A financial ratio that measures the proportion of a company's total debt to its total assets, indicating the leverage and financial health of the company.