Auditors Should Develop a Written Audit Program So That

question 78

Multiple Choice

Auditors should develop a written audit program so that:

• A)All material transactions will be included in substantive testing.
• B)Substantive testing performed prior to year-end will be minimized.
• C)The procedures will achieve specific audit objectives related to specific management assertions.
• D)Each account balance will be tested under either a substantive test or a test of controls.

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Definitions:

Probability Notation

The standard symbols and formulations used to represent probabilities in mathematical expressions.

Conditional Probability

The chance of a specific event occurring, conditional on the occurrence of another event beforehand.

Intersection

The point or set of points where two or more objects or sets, such as lines or sets in mathematics, meet or overlap.

Events A And B

Refers to two occurrences in probability and statistics that can be analyzed for their individual or joint likelihood.