Analytical Procedures Are One Type of Evidence Gathering Procedure

question 10

Essay

Analytical procedures are one type of evidence gathering procedure. According to auditing standards, there are five general forms of analytical procedures. Auditing standards also provide examples of five sources of information for analytical procedures.Required:Describe three of the five general forms of analytical procedures. For each form, describe a typical source of the information for the form. For each source, include any questions or concerns an auditor would have about the reliability or relevancy of the source.

Apply mathematical models to determine the optimal level of production and pricing strategies for firms under various circumstances.

Evaluate the role of fixed, variable, and marginal costs in short-run and long-run production decisions.

Understand the relationship between market structures and the elasticity of supply and demand.

Analyze the dynamics of competitive markets, including entry and exit of firms.

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Definitions:

Benefit Corporation (B-Corp)

A type of legal structure for a business that aims to generate profit while also focusing on positive impacts for society, workers, the community, and the environment.

Family Enterprising

The involvement of family members in developing and managing business ventures or entrepreneurial activities.

Entrepreneurship

The act of creating, launching, and managing a new business venture, often characterized by innovation and risk-taking.

Method

A systematic way of doing something, often involving a series of steps or actions to achieve a desired result.