Auditors May Decide to Replace Tests of Details with Analytical

question 44

Multiple Choice

Auditors may decide to replace tests of details with analytical procedures when possible because the

• A) analytical procedures are more reliable.
• B) analytical procedures are considerably less expensive.
• C) analytical procedures are more persuasive.
• D) tests of details are more difficult to interpret.

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Definitions:

Staffing

The process of hiring, positioning, and overseeing employees in a company to ensure effective and efficient operations.

Per Capita Requirement Costs

The average cost required to meet the needs of each individual within a population or group.

Compensation System

The complete package of monetary and non-monetary benefits provided by an employer to reward employees.

Business Indicator

Metrics or measures that provide insights into the health and direction of a business.