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:

Human Capital

The skills, knowledge, and experience possessed by an individual viewed in terms of their value or cost to an organization or country.

Compensating Differential

The difference in wages that compensates workers for undesirable aspects of a job, such as long hours or dangerous conditions.

Human Capital

The qualifications, know-how, and lived experiences of a person or society, assessed in terms of their profitability or cost to a business or country.

Compensating Differential

The additional amount of income that a worker requires to accept a job with undesirable features, compared to a similar job with more favorable features.