Most Auditors Prefer to Replace Tests of Details with Analytical

question 71

Multiple Choice

Most auditors prefer to replace tests of details with analytical procedures whenever possible because the:

• A) analytical procedures are more reliable.
• B) tests of details are more difficult to interpret.
• C) tests of details are more expensive.
• D) analytical procedures are more persuasive.

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Definitions:

Completed During

Usually refers to the tasks, projects, or productions that are finished within a specific period.

Equivalent Units

A concept used in cost accounting to indicate a quantity of production expressed in terms of fully completed units, calculated to measure and assign costs to partially completed goods.

Material Costs

Material Costs are the expenses incurred for the materials that are used in the production process of goods or services.

First-In, First-Out

An inventory valuation method which assumes that the first items purchased or manufactured are the first ones sold.