There Are Many Types of Analytical Procedures That the Auditor

question 33

Multiple Choice

There are many types of analytical procedures that the auditor can conduct during the planning stage of the financial statement audit.What is the purpose of comparing prepaid expenses and related expense accounts with those of prior years?

• A)to understand the client's industry and business
• B)to assess going concern
• C)to identify possible misstatements
• D)to reduce tests of controls

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Definitions:

"Weak" Situations

Contexts in which social norms and expectations are not well defined, allowing for a wider range of behaviors.

Personal Characteristics

Individual attributes, including personality traits, habits, and physical features, that define or distinguish one person from another.

Fundamental Attribution Error

The tendency to overestimate the effect of disposition or personality and underestimate the effect of situation in explaining social behavior.

Situational Factors

External influences that affect an individual's behavior and decision-making process in various environments.