Most Auditors Prefer to Replace External Confirmation with Analytical Procedures

question 52

Multiple Choice

Most auditors prefer to replace external confirmation with analytical procedures whenever possible because the

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

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Definitions:

Distribution Transformer

A transformer used in electrical power distribution to step down voltage levels from high to lower levels for consumer use.

Control Transformer

A transformer used to provide a stable voltage supply to control devices in electrical circuits, isolating them from the main power circuit.

Inrush Current

The amount of current that is drawn when an inductive device is first connected to the power line.

Magnetizing

Refers to the process of inducing magnetic properties in a material, usually by placing it within a magnetic field or by passing an electric current through it.