An Auditor Examining a Firm's Accounting Information System Creates a Fictitious

question 90

Multiple Choice

An auditor examining a firm's accounting information system 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.This is an example collecting audit evidence using

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

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Definitions:

Utility Function

A mathematical representation in economics that assigns a value to each possible choice or bundle of goods to reflect the satisfaction or happiness a consumer derives from it.

Consumption

The application of goods and services by domestic units.

Interest Rate

The percentage of a sum of money charged for its use, determining the cost of borrowing or the return on investment.

Income

Earnings received by an individual or entity, typically through wages, investments, or business activities, over a certain period.