Analytical Procedures

question 75

Multiple Choice

Analytical procedures:

• A)involve comparisons of recorded amounts to expectations developed by management.
• B)are only performed during the planning stage of the audit.
• C)are required to be performed when auditing an account balance.
• D)provide substantive evidence.

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Definitions:

Economic System

A particular set of institutional arrangements and a coordinating mechanism for solving the economizing problem; a method of organizing an economy, of which the market system and the command system are the two general types.

Institutional Arrangements

The set of policies, norms, and regulations that shape the behavior of individuals and organizations within a society.

Economizing Problem

The choices necessitated because society’s economic wants for goods and services are unlimited but the resources available to satisfy these wants are limited (scarce).

Property Rights

Legal rights to possess, use, and dispose of assets including real estate, personal property, or intellectual property.