Chapter 5 Discusses the Essential Properties of Working Papers

question 13

Multiple Choice

Chapter 5 discusses the essential properties of working papers.With respect to data analytics,working papers should contain the following items except:

• A) work programs used to document the audit procedures to collect, manipulate, model, and evaluate data
• B) evidence, including performance evaluations, of the competency of the auditors completing the working paper.
• C) database maps and data dictionaries that define the location and types of data auditors will analyze
• D) documentation about existing automated controls, including parameters and variables used for analysis

Calculate and interpret monthly net income based on given data.

Analyze the impact of selling additional units beyond the break-even point on profit.

Determine required sales to achieve a target net income considering fixed costs and contribution margin ratio.

Evaluate the impact of changes in selling price on unit sales required to maintain net income.

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Definitions:

Mutually Exclusive

This term refers to situations where two conditions cannot both be true at the same time. For example, a light switch cannot be both on and off simultaneously.

Consistent Principle

A rule or standard that is applied uniformly and reliably over time or across situations, without contradictions.

Jointly Exhaustive

A set of options or propositions is considered jointly exhaustive when it covers all possible scenarios or outcomes, leaving no possibility unaddressed.

Mutually Exclusive

Describing two or more events or conditions that cannot occur or be true at the same time.