An Analytical Procedure Related to Substantive Testing of Revenue Would

question 51

Multiple Choice

An analytical procedure related to substantive testing of revenue would be ________.

• A)developing an understanding of the client's system of internal control
• B)ensuring that all efficiency audits conducted by the internal audit function are properly planned
• C)to check revenue and the related accounts payable accounts on a sample basis
• D)to analyze ratio results relative to expectations based on prior years

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Definitions:

Exponential Distribution

A type of continuous probability distribution that is often used to model the time between independent events that happen at a constant rate.

Density Function

A mathematical function that describes the probability distribution of continuous variables, indicating the likelihood of different values.

Exponential Distribution

A probability distribution associated with the time between events in a Poisson process, characterized by a constant rate parameter.

Exponentially Distributed

A probability distribution characterized by its constant rate of decay or growth, often used in the study of time until some specific event.