All of the Following Concepts Are Associated with the Black

question 33

Multiple Choice

All of the following concepts are associated with the black box approach to auditing computer applications except

• A)the application need not be removed from service and tested directly
• B)auditors do not rely on a detailed knowledge of the application's internal logic
• C)the auditor reconciles previously produced output results with production input transactions
• D)this approach is used for complex transactions that receive input from many sources

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Definitions:

Herfindahl-Hirschman Index

A measure of market concentration that is calculated by squaring the market share of each firm competing in the market and then summing the resulting numbers.

Squared Market Shares

A measure used in the analysis of market concentration, calculating each firm's market share squared and summing them to assess competitive environments.

Industry

An industry is a group of companies that operate in a specific sector of the economy, often producing similar goods or services.

Cartel

An agreement among several producers to obey output restrictions in order to increase their joint profits.