The Audit Program for Most Audits Is Designed in Three

question 3

Multiple Choice

The audit program for most audits is designed in three parts.These parts are

• A)risk assessment procedures,tests of controls,and tests of details.
• B)risk assessment procedures,analytical procedures,and tests of details.
• C)obtaining an understanding of internal controls,analytical procedures,and tests of details.
• D)tests of controls,analytical procedures,and tests of details of balances.

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Definitions:

Horizontal Analysis

A financial analysis technique that compares line items in financial statements over a period of time to identify trends and growth patterns.

Percentage Change

A mathematical calculation that shows how much a quantity has increased or decreased in percentage terms from the original figure.

Horizontal Analysis

Comparative financial analysis technique that views financial data over multiple periods to identify trends and growth patterns.

Balance Sheet

A summary statement of a firm's assets, liabilities, and equity held by shareholders, reflecting its financial position at a specific moment.