Which of the Following Factors Would Most Likely Influence an Auditor's

question 192

Multiple Choice

Which of the following factors would most likely influence an auditor's consideration of the reliability of data when performing analytical procedures?

• A) Whether the data were developed in a computerized or a manual accounting system.
• B) Whether the data were prepared on the cash basis or in conformity with GAAP.
• C) Whether the data were developed under a system with adequate controls.
• D) Whether the data were processed in an online system or a batch entry system.

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Definitions:

Precommitments

Strategic decisions or investments made in advance to lock in certain behaviors, goals, or outcomes.

Time Inconsistency

A situation where a decision-maker's preferences change over time, often leading to a conflict between long-term goals and short-term gratification.

Package Sizes

The dimensions or amount of product contained within a package, affecting consumer choices and inventory management.

Framing Effects

The influence on decision making prompted by the way information is presented, rather than just the information itself.