An auditor examining a firm's accounting information system sets an embedded audit module to flag all credit transactions in excess of $1,500.The flag causes the system state to be recorded before and after each transaction is processed.This is an example collecting audit evidence using
A)an integrated test facility.
B)the snapshot technique.
C)a system control audit review file.
D)audit hooks.
E)continuous and intermittent simulation.

Question

Quizplus · Accepted Answer

The use of an embedded audit module to flag credit transactions over a certain amount and record the system state before and after each transaction is processed is an example of the snapshot technique. This technique captures a moment in time of the system's functioning and can help auditors identify any irregularities or errors that may have occurred during a specific period. The other options (A, C, D, E) are different auditing techniques, but not the best fit for this specific scenario.

An Auditor Examining a Firm's Accounting Information System Sets an Embedded