Auditors Do Not Rely on Detailed Knowledge of the Application's

question 60

Short Answer

Auditors do not rely on detailed knowledge of the application's internal logic when they use the __________________________ approach to auditing computer applications.

---

Definitions:

Characteristic Line

A line used in finance to illustrate the rate of return of an asset as a function of the return of the market as a whole.

Systematic Risk

The risk inherent to the entire market or market segment, not diversifiable through portfolio diversification.

Total Risk

The overall risk associated with an investment, encompassing both systematic and unsystematic risks.

Beta

A gauge for assessing the volatility or inherent risk in a security or portfolio against the broader market index.