A Type of Analytical Procedure in Which Auditors Use Their

question 96

Multiple Choice

A type of analytical procedure in which auditors use their professional judgment to review accounting data to identify unusual or significant items that may be an indication of a material misstatement ________.

• A)is referred to as scanning
• B)is known as substantive testing
• C)is known as an audit review
• D)is no longer allowed under Sarbanes-Oxley.

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Definitions:

Quality Control Attributes

Features or characteristics of a product or service measured or assessed to ensure they meet specific quality standards.

Western Electric Company

An American electrical engineering and manufacturing company that was instrumental in the development of the telecommunications industry.

Japanese Manufacturing

Japanese Manufacturing is characterized by its emphasis on efficiency, quality control, and continuous improvement, popularizing practices like Just-In-Time production.

Upper Control Limit

In process control, the highest value on a control chart that a process variable can reach before it is considered to be out of control, indicating a need for action.