When an Auditor Audits with the Computer, the Auditor

question 42

Multiple Choice

When an auditor audits with the computer, the auditor:

• A)Uses the computer to process transaction data under normal processing conditions
• B)Uses the computer as a tool to assist in various other auditing tasks
• C)Relies heavily upon test data to evaluate the presence or absence of specific computer controls
• D)Must also use an integrated test facility

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Definitions:

Currency

The system of money in general use in a particular country, or the physical notes and coins themselves.

Short-Run Exposure

Financial risk associated with fluctuating exchange rates that affects a company's transactions or valuation in the near term.

Exchange Rate Risk

The potential for losses resulting from fluctuations in the exchange rate between two currencies in international transactions.

Foreign Exchange Market

A global marketplace for trading currencies, determining the foreign exchange rates for every currency.