Which of the Following Factors Should Be Considered When Determining

question 80

Multiple Choice

Which of the following factors should be considered when determining the appropriate combination of manual techniques and computer-assisted audit techniques (CAATs) to be used during an audit? 1. Acceptance of CAATs findings by entity management. 2. Computer knowledge and expertise of the auditor. 3. Time constraints. 4. Level of audit risk.

• A) 1 and 4
• B) 2 and 3 only
• C) 1, 2, and 3
• D) 2, 3, and 4

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Definitions:

Billable Hours

The amount of an employee's work time that can be charged to a client, commonly used in professional services like law and consulting.

Net Income

The profit of a company after all expenses, taxes, and costs have been deducted from total revenue.

Profit Sharing

A compensation scheme where employees receive a portion of the company's profit, in addition to their regular salary.

Capital Balance

The amount of money an owner has invested in a business plus any retained earnings or minus any losses.