Analytical Procedures in the Overall Review Should Be

question 37

Multiple Choice

Analytical procedures in the overall review should be:

• A) reviewed by the partner or manager on the engagement.
• B) applied to every item on the financial statements.
• C) based on financial statement data before audit adjustments.
• D) performed only when material misstatement is expected.

---

Definitions:

ProMES

A performance management system that aims to improve organizational effectiveness by clarifying expectations and objectives.

Goal Theory

First proposed by Ed Locke, goal theory is a fairly simple model of motivation based on the premise that people with goals work harder than people without goals. Beyond that, the theory suggests that not all goals are created equal, and that goals that are difficult and yet specific and concrete will motivate employees best.

Specific

Clearly defined or identified; precise or exact.

Difficult Goals

Goals that are challenging and require significant effort and resources to achieve, often leading to higher levels of motivation and performance.