Inquiry Is a Valuable Technique During the Planning Phase of the Audit

question 26

Multiple Choice

Inquiry is a valuable technique during the planning phase of the audit because it

• A)involves the rechecking of controls to ensure that they are conducted accurately.
• B)is a type of audit evidence that provides a very high level of assurance.
• C)is conclusive evidence from an independent source.
• D)helps obtain information about how procedures and internal controls operate.

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Definitions:

Median

The middle value in a sorted list of numbers.

Mode

The value that appears most frequently in a set of data.

Mean

The average of a set of numbers, calculated by dividing the sum of all the numbers by the count of the numbers.

Price Per Gallon

The cost of one gallon of a substance, often used in the context of fuel pricing.