An Audit Basically Consists of Having the Auditor Form an Opinion

question 67

Multiple Choice

An audit basically consists of having the auditor form an opinion regarding management's financial statement assertions.The auditor therefore develops general and specific procedures to apply to the accounts and transactions.In a particular case,s/he might do this by:

• A)Tracing sales invoices to shipping documents to tests the completeness of reported sales.
• B)Tracing shipping documents to sales invoices to test the occurrence of reported sales.
• C)Tracing sales invoices to shipping documents to test the occurrence of reported sales.
• D)Tracing sales invoices to shipping documents to test the completeness of recorded accounts receivable.

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Definitions:

Independent Variable

In an experiment, the variable that is manipulated or changed by the researcher to observe its effects on the dependent variable.

Single-subject Designs

Research designs focusing on the response of an individual subject to varying conditions or treatment over time.

Internal Validity

The extent to which a study is free from systematic error or bias, allowing for the accurate attribution of causality to the variable being studied.

External Validity

How much the conclusions drawn from a research can be seen as applicable across various scenarios and to other populations.