According to the Standards, Which of the Following Is Least

question 215

Multiple Choice

According to the Standards, which of the following is least important in determining the adequacy of an annual audit plan?

• A) Sufficiency.
• B) Appropriateness.
• C) Effective deployment.
• D) Cost effectiveness.

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Definitions:

Pareto Efficient

An economic state where resources are allocated in a way that it is impossible to make any one individual better off without making at least one individual worse off.

Efficiency

A measure of how well resources are used to achieve a goal, maximizing output from given inputs without waste.

Equity

The concept of fairness or justice, often discussed in the distribution of wealth, or the ownership interest in a firm.

Perfectly Competitive System

A market structure where many firms offer products or services that are similar, leading to a high level of competition and prices that reflect the true supply and demand.