The Purpose of Analytical Procedures at the Completion of the Audit

question 7

Multiple Choice

The purpose of analytical procedures at the completion of the audit includes all of the following except:

• A) Revising the audit plan.
• B) Considering overall reasonableness of the financial statements.
• C) Reviewing adequacy of evidence gathered to investigate unusual fluctuations.
• D) Recalculating some of the ratios examined during audit planning.

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Definitions:

Derived Demand

The demand for a factor of production or intermediate good that occurs as a result of the demand for another good or service.

Marginal Productivity

The additional output that results from using one more unit of a particular input, holding all other inputs constant.

Resource Price

The cost associated with acquiring resources or inputs needed for production, such as raw materials, labor, and capital.

Anaconda Smelting Company

A historical company involved in the process of melting and refining metal ore to separate it from its impurities.