Because It Is Not Possible to Test All Transactions and Balances

question 77

Multiple Choice

Because it is not possible to test all transactions and balances, auditors rely on this to choose and test a limited number of items and transactions and then make conclusions about the balance as a whole.

• A)Sampling
• B)Materiality
• C)Compliance
• D)Substance

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Definitions:

Company-wide Strategy

A strategic plan that encompasses all parts of a business, setting overall goals and objectives that affect every department.

Tactical Greening

A strategy by businesses to implement superficial or minor eco-friendly practices often for marketing or public relations benefits rather than a genuine commitment to environmental sustainability.

Limited Change

Minimal alterations or adjustments made within an organization, process, or system, often to avoid disruption while pursuing improvement.

Functional Area

Refers to specific categories within a business or organization, such as marketing, finance, or production, each responsible for specific tasks and operations.