Which of the Following Would an Auditor Most Likely Use

question 842

Multiple Choice

Which of the following would an auditor most likely use in determining the auditor's preliminary judgment about materiality?

• A) The results of the initial assessment of control risk.
• B) The anticipated sample size for planned substantive tests.
• C) The entity's financial statements of the prior year.
• D) The assertions that are embodied in the financial statements.

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Definitions:

Corn

A cereal plant that yields large grains, or kernels, set in rows on a cob; often used as a staple food and feed.

Rent

The price paid by a tenant to a landlord for the use of a property, typically on a monthly basis.

Present Value

Today's worth of a future money sum or cash flow chain, considering a predetermined rate of return.

Usurious Interest

Exorbitantly high interest rates, often exceeding legal or ethically acceptable limits.