The Purpose of Allocating Planning Materiality to Balance Sheet Accounts

question 8

Multiple Choice

The purpose of allocating planning materiality to balance sheet accounts is to

• A)assess the appropriate evidence to accumulate for each account on the balance sheet.
• B)assess the appropriate evidence to accumulate for each account on both the balance sheet and income statement.
• C)reduce the amount of procedures done in the course of the audit.
• D)increase the possibility that fraud or illegal activities would be detected by audit procedures.

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Definitions:

McDonaldization

A term referring to the process by which the principles of the fast-food industry, such as efficiency, calculability, predictability, and control, have come to dominate other sectors of society.

George Ritzer

A sociologist known for his work on the McDonaldization thesis, which suggests that society is becoming more efficient and predictable but also more irrational.

Social Loafing

The occurrence in which people put in less effort towards achieving an objective when they are part of a group than when they are working by themselves.

Group Presentation

A collaborative effort where multiple individuals work together to deliver a presentation on a specific topic to an audience.