In Selecting an Auditee for Operational Auditing, an Understanding of the Potential

question 38

Multiple Choice

In selecting an auditee for operational auditing, an understanding of the potential auditees is obtained by all of the following except:

• A) applying analytical procedures to quantify trends and unusual relationships.
• B) reviewing background file data on each auditee.
• C) touring the auditee's facilities to ascertain how it accomplishes its objectives.
• D) interviewing the manager of the activity about specific problem areas.
• E) conducting mini audit probes to confirm or clarify the auditor's understanding of potential problems.

Distinguish between different types of property interests and their implications.

Comprehend the concept and legal implications of bailment and its types.

Recognize the legal aspects and responsibilities involved in landlord and tenant relationships.

Identify the rights and obligations of parties in mortgage and lease agreements.

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Definitions:

Deficit Principle

A concept in motivation theory suggesting that a satisfied need no longer motivates, emphasizing that only unmet needs influence behavior.

Progression Principle

A training principle that emphasizes the need for an increasing overload to stimulate continued improvement and adaptation in physical fitness or skill development.

Progression Principle

A concept in exercise and training that emphasizes the need for continuous increase in the intensity, duration, frequency, or amount of activity to stimulate improvements in physical fitness or skill.

Standard of Living

The level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.