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:

Reality Checking

The act of verifying the truth or accuracy of a belief or perception against the facts or actual experience.

Coach

A peer or manager who works with an employee to motivate the employee, help him or her develop skills, and provide reinforcement and feedback.

Motivate

To provide someone with a reason or incentive to do something.

Reinforcement

A concept in behavior psychology where the frequency of a behavior is increased by following it with a reinforcement, which can be positive or negative.