Which of the Following Would an Auditor Most Likely Use

question 33

Multiple Choice

Which of the following would an auditor most likely use in determining the auditor's overall materiality?

• A)The anticipated sample size for planned substantive procedures.
• B)The entity's annualized interim (i.e., quarterly)financial statements.
• C)The results of the internal control questionnaire.
• D)The contents of the management representation letter.

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Definitions:

Discharge

The release or termination of an obligation, such as a debt, duty, or liability, often occurring through payment, completion, or legal means.

Performance

The execution or accomplishment of work, acts, or tasks as required by a contract or expectation.

Agreement

A mutual understanding or arrangement, often formalized in a contract, between two or more parties to perform or refrain from performing particular acts.

Reasonable Value

The fair or market value of a service or item, considered to be value as determined by what a willing buyer would pay to a willing seller in an arms-length transaction.