A) There Are Seven Types of Audit Evidence: Inspection, Observation

question 26

Essay

A) There are seven types of audit evidence: inspection, observation, inquiries of the client, external confirmation, recalculation, reperformance, and analytical procedures. For each of the following types of audit tests, indicate the type(s) of evidence that can be obtained through the test: (1) tests of controls, (2) analytical procedures, and (3) tests of details of balances.
B) Contrast the circumstances in which the auditor would choose not to test controls with those in which he or she would perform tests of controls.
C) Types of audit tests include tests of controls, analytical procedures, and tests of details of balances. Rank these types of tests from least costly to most costly.

---

Definitions:

Conducting Marketing Research

The process of gathering, analyzing, and interpreting information about a market, about a product or service to be offered for sale in that market.

Challenges

Difficulties or obstacles that need to be overcome in order to achieve a goal or complete a task.

Big Data

A term that describes both the growth in information that inundates businesses each day and the complex tools used to analyze the data and derive meaningful insights.

Predictive Modeling

Analysis that uses statistical techniques and algorithms based on patterns of past behavior to predict future unknown events, such as future buying behavior.