The Advantages of Around-The-Computer Auditing Include

question 6

Multiple Choice

The advantages of around-the-computer auditing include:

• A)The emphasis which is placed on testing data processing exceptions
• B)Use of live data
• C)The minimal disturbance of a company's records
• D)both b and c

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Definitions:

Inventory Turnover

A ratio indicating how many times a company's inventory is sold and replaced over a specific period.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of a business.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term and long-term obligations, calculated as current assets divided by current liabilities.

Acid-test Ratio

A financial metric that measures a company's ability to pay off its current liabilities with its most liquid assets without relying on the sale of inventory.