Analytical Procedures Performed near the End of an Audit Generally

question 32

Multiple Choice

Analytical procedures performed near the end of an audit generally include

• A)considering unusual or unexpected account balances that were not previously identified.
• B)performing tests of transactions to corroborate management's financial statement assertions.
• C)gathering evidence concerning account balances that have not changed from the prior year.
• D)retesting control activities that appeared to be ineffective during the assessment of control risk.

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Definitions:

Confidence Interval

A series of values, derived from investigations of a sample, expected to incorporate the value of an unrevealed population parameter.

Population Mean

The average value of all the elements in a population, representing a central measure of tendency for the distribution of values.

Christmas Trees

In the oil and gas industry, an assembly of valves, spools, and fittings used on a wellhead to control the flow of oil and gas.

Differential Cost

The difference in cost between two alternative decisions, or a change in cost from one period to the next.