Once the Auditor Has Planned the Application of Audit Data

question 74

Multiple Choice

Once the auditor has planned the application of audit data analytics, the auditor should _______.

• A)access the data, make a copy of the client's data, and prepare the data for analysis
• B)seek the approval of management with respect to the tests
• C)determine how much these procedures will increase the cost of the audit and advise management accordingly
• D)access the data and prepare the data for the internal auditors to review

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Definitions:

Taxable Payments

Payments received that are subject to income tax, including wages, salaries, and interest income.

Taxpayer Identification Number

A unique number assigned to taxpayers for identification purposes by the IRS or Social Security Administration, such as a Social Security Number (SSN) for individuals.

Monthly Schedule Depositor

A designation for businesses that are required to deposit employment taxes on a monthly basis due to their tax liability amount.

Semiweekly Schedule Depositor

This term refers to businesses that are required to deposit employment taxes on a semiweekly basis, typically when they have accrued a certain amount of tax liability.