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:

Executive Agency

An agency that is typically located within the executive branch, under one of the cabinet-level departments. The agency head is appointed by the president with the advice and consent of the Senate.

State Level

State level refers to government authority and operations that take place at the state as opposed to national or local jurisdiction within a federal system.

Privacy Act Of 1974

A United States federal law that establishes a Code of Fair Information Practice to regulate the collection, maintenance, use, and dissemination of personal information by federal agencies.

Written Consent

Formal approval of an action or decision, documented in writing.