When Conducting a Substantive Analytical Procedure, _______

question 55

Multiple Choice

When conducting a substantive analytical procedure, _______.

• A)auditors develop an expectation, or estimate, using data in the auditor's records or data from reliable outside sources, and then compare the expectation with the client's recorded amount
• B)auditors develop an expectation, or estimate, using data in the client's records or data from reliable outside sources, and then compare the expectation with the client's recorded amount.
• C)auditors develop an expectation, or estimate, using data in the client's records or data from reliable internal sources, and then compare the expectation with the client's recorded amount.
• D)the procedure should be approved by management beforehand

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Definitions:

Marginal Cost

The change in total cost that arises when the quantity produced changes by one unit; essentially the cost of producing one more unit of a good.

Government Operation

Activities carried out by the government, including regulation, provision of public services, and maintenance of law and order.

Average Costs

The total costs divided by the total output produced, a measure of cost efficiency for production.

Social Welfare

A concept concerning the well-being, health, and economic security of society as a whole.