Analytical Procedures Are Substantive Tests And, If the Results of the Analytical

question 19

Multiple Choice

Analytical procedures are substantive tests and, if the results of the analytical procedures are favorable, the auditor would normally

• A) reduce the extent of tests of details of balances.
• B) reduce the extent of tests of controls.
• C) reduce the tests of transactions.
• D) reduce all of the other tests.

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Definitions:

TPS

Toyota Production System, a manufacturing methodology focused on reducing waste and improving efficiency and quality.

Lean Systems

Lean systems are management philosophies that focus on minimizing waste within manufacturing systems while simultaneously maximizing productivity.

Competitive Advantage

The attributes that allow an organization to outperform its competitors, including cost structure, product offerings, brand, and customer service.

Overall Returns

The total financial gain or loss generated from an investment or portfolio of investments over a specific period, considering both capital gains and income received.