A System Walkthrough Is Primarily Used to Help the Auditor

question 14

Multiple Choice

A system walkthrough is primarily used to help the auditor:

• A)test the ending account balances.
• B)test the details of transactions.
• C)determine whether internal controls are in place.
• D)determine whether the audit engagement should be accepted.

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Definitions:

Vertical Equity

The principle that taxpayers with higher incomes should pay more in taxes than those with lower incomes.

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicating the percentage of additional income that is paid in tax.

Efficiency

The optimal use of resources to achieve the best possible outcome or output with minimal waste.

Equity

Equity refers to fairness or justice in the way people are treated and involves ensuring equal opportunities and rights for all individuals.