Chapter 5 Discusses the Essential Properties of Working Papers

question 29

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) IT-related documentation, including flowchart and process maps that provide system understanding
• C) database maps and data dictionaries that define the location and types of data auditors will analyze
• D) documentation of every matter considered during the audit.

Grasp the key performance metrics for investment centers, including profit margin, investment turnover, and return on investment.

Analyze performance using the balanced scorecard.

Calculate departmental income and gross profit for divisions.

Understand the concept of residual income and how it is calculated for divisions.

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Definitions:

Capital Account

Part of a country's balance of payments, recording the net change in asset ownership and investments.

Foreign Exchange Markets

Global decentralized or over-the-counter markets for trading currencies, determining the foreign exchange rates.

High Rates of Inflation

A situation where the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling, is significantly above the normal rate.

Rate of Inflation

The percentage increase in the price level of goods and services in an economy over a period of time, typically calculated annually.