Analytical Procedures Performed in the Final Review Stage of an Audit

question 539

Multiple Choice

Analytical procedures performed in the final review stage of an audit generally would include:

• A) Reassessing the factors that assisted the auditor in deciding on preliminary materiality levels and audit risk.
• B) Considering the adequacy of the evidence gathered in response to unexpected balances identified in planning.
• C) Summarizing uncorrected misstatements specifically identified through tests of details of transactions and balances.
• D) Calculating projected uncorrected misstatements estimated through audit sampling techniques.

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Definitions:

Effective Interest

The actual interest rate earned or paid on an investment or loan over a specified period, taking into account the effect of compounding.

Compounded Monthly

Interest calculation method where interest earned is added to the principal sum each month, increasing the total amount on which future interest is computed.

Time Value

A concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.