Which of the Following Is Not True Regarding Preliminary Analytical

question 111

Multiple Choice

Which of the following is not true regarding preliminary analytical procedures performed by the auditor when planning the audit?

• A) The primary preliminary analytical procedure for stockholders' equity accounts is a comparison of current year account balances with prior year account balances.
• B) If there are unusual or unexpected relationships, the planned audit procedures would be adjusted to address the potential material misstatements.
• C) The auditor should have an expectation as to the nature and magnitude of any account balance changes.
• D) Auditors show focus on just the numbers when performing analytical procedures.

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Definitions:

Efficiency

The ratio of the output obtained to the input used in the production process, measuring how well resources are utilized.

Gantt Charts

A type of bar chart that illustrates a project schedule, showing the start and finish dates of the various elements of a project.

Loading Jobs

The process of assigning work to resources, machines, or workstations in a production environment.

Assignment Method

A special class of linear programming models that involves assigning tasks or jobs to resources.