An Advantage of Generalized Audit Software Is That

question 44

Multiple Choice

An advantage of generalized audit software is that

• A) it can select a sample of accounts receivable for confirmation and help the auditor prepare confirmation requests.
• B) the auditor avoids having to review systems documentation.
• C) it eliminates the need for any coding by the auditor.
• D) the client's staff can use it to perform audit-related tasks.

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Definitions:

Market Failure

A situation in which the allocation of goods and services by a free market is not efficient, often justifying government intervention.

Misallocated

Describes resources or efforts that are used inefficiently or inappropriately, leading to suboptimal outcomes.

Perfectly Competitive

A market structure characterized by a large number of small firms, homogeneous products, and free entry and exit, leading to price takers rather than makers.

Worthless Coin

A coin that has lost its value as currency, often due to hyperinflation or being phased out of circulation.