If No Material Differences Are Found Using Analytical Procedures, and the Auditor

question 34

Multiple Choice

If no material differences are found using analytical procedures, and the auditor concludes that misstatements are not likely to have occurred, then:

• A) the number or extent of tests of details of balances may be reduced.
• B) it will be necessary to increase the tests of transactions.
• C) it will be necessary to increase the tests of balances.
• D) it will not be necessary to perform tests of balances.

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Definitions:

Mean

The arithmetic average of a set of numbers, calculated by adding them together and dividing by the number of values in the set.

Sample Size

The number of observations or subjects used in a study or research, influencing the study's findings' reliability and validity.

Variable

An element, feature, or factor that is liable to vary or change, used in experiments to determine its effects on the outcome.

Confidence Interval

A continuum of values, obtained through the study of sample statistics, poised to contain the value of an uncharted population parameter.