Continuous Audit Techniques Can Improve the Effectiveness of the Audit

question 18

Multiple Choice

Continuous audit techniques can improve the effectiveness of the audit by:

• A)Focusing most of the audit effort near the year-end
• B)Alerting auditors to potential problems when the problems occur
• C)Protecting the privacy of the auditors
• D)Facilitating parallel simulation

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Definitions:

Retirement

The point in time when an individual chooses to leave the workforce permanently, often accompanied by receiving pension or retirement savings.

Annual Rate of Return

This is the percentage change in the value of an investment over a one-year period, taking into account both capital gains and income received.

Investment

The allocation of resources, usually financial, in expectation of a future return, which may include interest earnings, dividends, or appreciation in value.

Property

Legally owned items, including real estate and personal belongings, over which the owner has exclusive rights.