An Auditor's Decision Either to Apply Analytical Procedures as Substantive

question 27

Multiple Choice

An auditor's decision either to apply analytical procedures as substantive tests or to perform tests of details usually is determined by the:

• A)availability of data aggregated at a high level.
• B)relative effectiveness and efficiency of the tests.
• C)timing of tests performed after the balance date.
• D)auditor's familiarity with industry trends.

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Definitions:

Neoliberalism

An economic policy model that emphasizes the reduction of state intervention in the economy, free-market capitalism, deregulation, and reduction in government spending on social services.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, indicative of a thriving economy.

Poor Societies

Communities characterized by a lack of financial resources and access to basic amenities, leading to widespread poverty.

Counteracting Globalization

Efforts aimed at resisting or managing the effects of globalization in order to preserve local cultures, economies, and environments.