Which of the Following Is NOT a Technique Used by an Auditor

question 37

Multiple Choice

Which of the following is NOT a technique used by an auditor in a performance audit engagement to gain an understanding of the controls in place to assure that a program meets its objective?

• A)Reading the legislation.
• B)Making inquiries of employees.
• C)Flow-charting appropriate systems.
• D)Preparing and administering questionnaires.

Calculate and comprehend the net present value (NPV) of investment projects and its implications for firm value.

Determine the impact of financing decisions, including equity financing, on book value per share and market value per share.

Apply the concept of price-earnings (P/E) ratio to evaluate the implications of new projects on firm valuation.

Calculate and analyze the outcomes of initial public offerings (IPOs) for firms, including cash received and implications for book value and market valuation.

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Definitions:

Financial Interests

Investments or stakes in financial assets or ventures that carry potential for financial gain or loss.

Racial Formation

A process by which societal structures and cultural representations perpetually create and recreate race.

Michael Omi

An American sociologist known for his work on racial identity and the social construction of race.

Howard Winant

A notable sociologist recognized for his contributions to the understanding of race and racism in contemporary society.