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:

Adjust Scope

The process of modifying the boundaries or extent of a project, task, or investigation, often to ensure alignment with objectives or resources.

Fair Use Doctrine

A legal principle that allows limited use of copyrighted material without permission for purposes such as criticism, comment, news reporting, teaching, scholarship, or research.

Copyright Law

Copyright law is a legal framework that grants creators exclusive rights to their original works, such as literature, music, and art, for a certain period, protecting them from unauthorized use.

Secondary Data

Information that was collected by someone else for a different purpose but is being utilized for a new research study or analysis.