Which of the Following Procedures Would an Auditor Most Likely

question 60

Multiple Choice

Which of the following procedures would an auditor most likely include in the initial planning of a financial statement audit?

• A)Perform detailed testing of the individual balance sheet accounts.
• B)Examining documents to detect illegal acts having a material effect on the financial statements.
• C)Considering whether the client's accounting estimates are reasonable in the circumstances.
• D)Determining the extent of involvement of the client's internal audit function.

---

Definitions:

Productivity

A measure of efficiency that calculates the amount of output produced per unit of input.

Service Sector

Refers to the segment of the economy that provides services rather than producing goods, including industries like retail, healthcare, and finance.

Labour-intensive

Describing industries or processes that require a large amount of manual labor compared to the amount of capital.

Automate

the process of using technology to perform tasks with minimal human intervention, improving efficiency and accuracy.