During the Performance of an Audit, Which of the Following

question 51

Multiple Choice

During the performance of an audit, which of the following are key considerations?

• A) What sampling plans may be necessary? II. Is the audit schedule progressing as planned? III. Is there a need for a technical specialist? IV. Is the level of compliance satisfactory?
• B) I, II and III only
• C) II and IV only
• D) I and IV only
• E) I, II, III and IV

Understand the rules for capitalizing or expensing costs related to the acquisition, development, and maintenance of assets.

Identify the financial reporting requirements for the disposal and impairment of long-lived assets.

Understand the concept of the fixed asset turnover ratio and how business decisions impact it.

Interpret the accounting standards (GAAP) related to asset capitalization, depreciation, and amortization.

---

Definitions:

Confidence Interval

A range of values that is used to estimate the true value of a population parameter with a certain level of confidence.

Standard Deviation

An index used to assess the extent of variation or scatter among data points.

Sample Size

The number of observations or individuals in a subset collected from a population for the purposes of statistical analysis.

Confidence

The degree of certainty or trust in a particular outcome or result, often expressed in terms of probability.