According to IIA Guidance, Which of the Following Statements Is

question 124

Multiple Choice

According to IIA guidance, which of the following statements is true regarding analytical procedures?

• A) Data relationships are assumed to exist and to continue where no known conflicting conditions exist.
• B) Analytical procedures are intended primarily to ensure the accuracy of the information being examined.
• C) Data relationships cannot include comparisons between operational and statistical data.
• D) Analytical procedures can be used to identify unexpected differences, but cannot be used to identify the absence of differences.

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Definitions:

Capital Intensity Ratio

A metric that measures the amount of assets needed by a company to generate one dollar of revenue.

Operating Capacity

The maximum amount of work or output a company can produce in a set period under normal working conditions.

Full Capacity Sales

The maximum sales level that a company can achieve with its current resources and capabilities without incurring additional costs.

Operating Capacity

The maximum output that a company can produce and sell with its existing equipment and resources, without incurring unsustainable costs.