To Be Effective,analytical Procedures Performed near the End of the Audit

question 20

Multiple Choice

To be effective,analytical procedures performed near the end of the audit should be performed by

• A)The partner performing the quality review of the audit.
• B)A beginning staff accountant who has had no other work related to the engagement.
• C)A manager or partner who has a comprehensive knowledge of the client's business and industry.
• D)The CPA firm's quality control manager.

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Definitions:

Opportunity Costs

The cost of foregoing the next best alternative when making a decision or choice.

Post Hoc, Ergo Propter Hoc

A logical fallacy that suggests that because one event followed another, the first event caused the second.

Inductive Reasoning

the process of making generalizations based on specific observations or instances.

Normative Economics

The branch of economics that focuses on what ought to be or what should happen, emphasizing value judgments about economic policies.