Observation Is an Important Audit Technique Where the Auditor Can

question 47

Multiple Choice

Observation is an important audit technique where the auditor can use sight,hearing,touch,and smell.Observation needs to be used together with other audit techniques because

• A)employees will often perform their procedures consistently over time.
• B)it is a high-cost technique that is rarely used by auditors.
• C)it is a point-in-time technique limited to the time of the observation.
• D)auditors may not accurately observe and interpret what is happening.

---

Definitions:

Welfare Economics

The branch of economics that focuses on the optimal allocation of resources and goods and how the allocation affects social welfare.

Equitable Outcome

An equitable outcome is a situation or result in economic transactions or distributions that is considered fair or just among all parties involved.

Contract Curve

In economics, a line on an Edgeworth box diagram representing the set of optimal allocations between two parties.

Egalitarian View

A perspective advocating for equal rights, benefits, and opportunities for all members of society.