Which of the Following Statements Is an Advantage to Using

question 53

Multiple Choice

Which of the following statements is an advantage to using the test data technique in information systems auditing?

• A) The test can be run only on a specific program at a specific point in time.
• B) The test must be announced.
• C) Test data is limited to certain combinations of processing conditions.
• D) The technique is used for testing programs in which calculations such as interest or depreciation are involved.

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Definitions:

Nominal Rate of Interest

The stated interest rate of a bond or loan without adjusting for inflation, representing the actual percentage that borrowers pay to lenders.

Inflation Rate

The percentage increase in the general price level of goods and services in an economy over a period of time.

Nominal Interest Rates

Nominal interest rates are the stated interest rates on financial products without adjustment for inflation.

Rate of Inflation

The Rate of Inflation is the pace at which the general level of prices for goods and services is rising, eroding purchasing power.