Some Key Issues to Consider When Planning an Audit Data

question 101

Multiple Choice

Some key issues to consider when planning an audit data analytics application are:

• A)What financial statement items, accounts or disclosures and related assertions are being audited?
• B)What is the overall purpose of the audit data analytics application and how will it contribute to the balance of the audit? For example, is audit data analytics being used as a risk assessment procedure or as a substantive test?
• C)What audit data analytics tool is best suited for the audit purpose? For example, which techniques, tools, graphics, tables or other analytical techniques should be used.
• D)All these answer choices are correct.

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Definitions:

Economic Profits

The outcome of subtracting all varieties of costs, including direct and indirect, from overall sales.

Consumer Demand

The desire and willingness of consumers to purchase goods and services at given prices.

Economic Profits

The divergence in a company's overall sales versus its combined expenses, spanning both acknowledged and hidden costs.

Perfectly Competitive

A market structure characterized by a large number of buyers and sellers, where no single entity can affect the price of the product.