The Type of Computer Assisted Audit Technique (CAAT) That Would

question 40

Multiple Choice

The type of computer assisted audit technique (CAAT) that would be least suitable for testing controls where credit sales transactions are processed using real time systems is:

• A) systems control and audit file.
• B) integrated test facility.
• C) embedded audit facility.
• D) test data approach.

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Definitions:

First Department

A term often used in process costing that refers to the initial stage or department through which materials pass in the production process.

Equivalent Units

A concept in cost accounting used to calculate the number of units of production expressed in terms of fully completed units.

Materials

Raw substances or components used in the manufacturing process to create products.

Equivalent Units

A concept used in cost accounting to convert the amount of work done on partially finished goods into the number of fully completed units.