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.

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Definitions:

Immigrants

People who move to a new country or region, intending to settle and reside there, often in search of a better quality of life or opportunities.

McNary-Haugen Bill

Vetoed by President Calvin Coolidge in 1927 and 1928, the bill to aid farmers that would have artificially raised agricultural prices by selling surpluses overseas for low prices and selling the reduced supply in the United States for higher prices.

Calvin Coolidge

The 30th President of the United States (1923–1929), known for his small government conservatism and for his quiet and reserved personality, leading the nation through the Roaring Twenties.

Laissez-faire Economics

An economic theory advocating minimal government intervention in the marketplace and allowing free interaction of supply and demand.