Which of the Following Audit Techniques Is Used to Evaluate

question 196

Multiple Choice

Which of the following audit techniques is used to evaluate control design while also embodying auditing's analytical process?

• A) A risk and control matrix.
• B) A flowchart.
• C) A walk-through.
• D) A process narrative.

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Definitions:

Base Rate Fallacy

The tendency to ignore or underuse base rate information and instead to be influenced by the distinctive features of the case being judged

Representativeness Heuristic

A cognitive shortcut where an individual assesses the probability of an event based on how similar it is to the typical case.

Fundamental Attribution Error

The tendency to overemphasize personal traits and underemphasize situational factors when explaining others' behavior.

Situational Causes

Factors external to an individual that are viewed as causes for behavior.