The Primary Objective of Analytical Procedures Used in the Final

question 34

Multiple Choice

The primary objective of analytical procedures used in the final review stage of an audit is to

• A)obtain evidence from details tested to corroborate particular assertions.
• B)identify areas that represent specific risks relevant to the audit.
• C)assist the auditor in looking for potential material misstatements.
• D)satisfy doubts when questions arise about a client's ability to continue operations.

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Definitions:

Variable Cost

A cost that varies with the level of output or production volume, such as materials and labor.

Transfer Price

The price at which goods or services are sold between divisions within the same company or between affiliated companies.

Minimum Return

The least amount of profit or yield expected from an investment, project, or venture to consider it desirable or viable.

Invested Assets

Resources that are obtained with the goal of producing income or profit.