After the Auditor Has Completed All the Procedures,it Is Necessary

question 37

Multiple Choice

After the auditor has completed all the procedures,it is necessary to combine the information obtained to reach an overall conclusion as to whether the financial statements are fairly presented.This is a highly subjective process that relies heavily on

• A)generally accepted auditing standards.
• B)the provincial institutes' Rules of Professional Conduct.
• C)generally accepted accounting principles.
• D)the auditor's professional judgment.

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Definitions:

Cross Elasticity

The extent to which the demand for a certain good alters in response to price changes of another good.

Substitutes

Goods or services that can be used in place of each other, where an increase in the price of one leads to an increased demand for the other.

Income Elasticity

A measure of how much the quantity demanded of a good changes in response to a change in consumers' income.

Demand Inelastic

When the quantity demanded of a good or service is relatively unchanged in response to price changes.