Which of the Following Approaches Is Most Suitable for Auditing

question 72

Multiple Choice

Which of the following approaches is most suitable for auditing the finance and investment cycle?

• A)Perform extensive tests of controls and limit substantive procedures to analytical procedures.
• B)Ignore internal controls and perform extensive substantive procedures.
• C)Gain an understanding of internal controls and perform extensive substantive procedures.
• D)Ignore internal controls and limit substantive procedures to analytical procedures.

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Definitions:

Correlational Research

A type of non-experimental research method that examines the extent to which two variables are related, without inferring a cause-and-effect relationship.

Prediction

The act of making an educated guess about the outcome of a future event based on current information or patterns.

Replication

The process of repeating a study or experiment to verify results and ensure reliability.

Positive Correlation

A relationship between two variables where an increase in one variable is associated with an increase in the other.