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:

Restraint Of Trade

Any activity or agreement that restricts competition or interferes with the ability to conduct business freely.

Goodwill

The intangible asset representing the value of a business's reputation, customer relations, and brand identity that contributes to its profitability.

Usury Statutes

Laws regulating the maximum interest rates that can be charged on loans.

Real Estate Mortgages

A secured loan agreement where the borrower pledges real estate property as collateral for the loan, which the lender can seize if the loan isn't repaid.