Analytical Procedures Are Required at the Risk Assessment Stage and As

question 87

Multiple Choice

Analytical procedures are required at the risk assessment stage and as:

• A)Tests of internal control.
• B)Substantive procedures.
• C)Procedures near the end of the audit.
• D)Computer generated procedures.

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Definitions:

Initial Cost

The initial expenditure required to acquire an asset or to start a project, including purchase price and any associated set-up fees.

Investment

Allocation of resources, usually money, in order to generate income or profit.

Cash Flows

The total amount of money being transferred into and out of a business, especially regarding liquidity.

Net Present Value

A technique employed in the process of capital allocation for evaluating the profitability of a project or investment through determining the net present value of cash inflows and outflows.