Which of the Following Procedures Most Likely Would Provide an Auditor

question 367

Multiple Choice

Which of the following procedures most likely would provide an auditor with evidence about whether an entity's internal control activities are suitably designed to prevent or detect material misstatements?

• A) Reperforming the activities for a sample of transactions.
• B) Performing analytical procedures using data aggregated at a high level.
• C) Vouching a sample of transactions directly related to the activities.
• D) Observing the entity's personnel applying the activities.

Understand the geological features related to the major oil-producing regions.

Acknowledge the usage of minerals and fossil fuels by weight and their importance to industry.

Understand the environmental and technical aspects of unconventional oil and gas sources (e.g., shale gas, oil sands).

Recognize the significance of geological surveys and drilling in confirming subsurface interpretations.

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Definitions:

Data

Data refers to qualitative or quantitative attributes of a variable or set of variables.

Knowledge

Data and/or information that have been organized and processed to convey understanding, experience, accumulated learning, and expertise as they apply to a current problem or activity.

Wisdom

The capacity to apply knowledge, experience, understanding, and insight in a judicious and practical way to solve problems or make decisions.

Ad Hoc

A term used to describe actions or solutions that are designed for a specific purpose or situation, not intended for general use.