Which of the Following Is Not a Substantive Audit Procedure

question 47

Multiple Choice

Which of the following is not a substantive audit procedure for estimates of management?

• A)Recalculating the mathematical estimate
• B)Observing whether estimates are prepared by qualified personnel
• C)Developing an independent estimate based on alternative assumptions
• D)Comparing the estimates of management to subsequently discovered facts before the end of fieldwork

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Definitions:

Benefit

An advantage, improvement, or gain that is obtained from something.

Personality Characteristics

The distinctive traits and behaviors that make up an individual's character, influencing how they interact with the world and others.

Segmentation

The process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers based on some type of shared characteristics.