A Flowchart Is Most Frequently Used by an Auditor in Connection

question 58

Multiple Choice

A flowchart is most frequently used by an auditor in connection with the:

• A)preparation of generalized computer audit programs.
• B)review of the entity's internal controls.
• C)use of statistical sampling in performing an audit.
• D)performance of analytical procedures of account balances.

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Definitions:

Opportunity Rate

The return of a foregone option when another investment is chosen, embodying the concept of opportunity cost.

Time-Value

The belief that possessing money today is more valuable than having the same sum later, due to its capability to accrue earnings.

Compounded Monthly

A method of calculating interest where the earned interest is added to the principal balance at the end of each month, so that the interest for the next month is calculated on a higher balance.