A Common Comparison Occurs When the Auditor Calculates the Expected

question 116

Multiple Choice

A common comparison occurs when the auditor calculates the expected balance and compares it with the actual balance.The auditor's expected account balance may be determined by:

• A) using ABS data.
• B) using industry standards.
• C) relating it to some other balance sheet or income statement account or accounts.
• D) inquiry of client.

---

Definitions:

Sophisticated

Having a complex or nuanced understanding, often referring to a high level of experience or education.

Approved

Authorization or sanction officially given.

Accredited Investor

An individual or a business entity that is allowed to deal in securities that may not be registered with financial regulatory authorities.

Natural Person

A human being, as opposed to a legal person, which can be an organization or entity recognized by law.