Analytical Procedures Enable the Auditor to Predict the Balance or Quantity

question 8

Multiple Choice

Analytical procedures enable the auditor to predict the balance or quantity of an item under audit.Information to develop this estimate can be obtained from all of the following except:

• A) Tracing transactions through the system to determine whether procedures are being applied as prescribed.
• B) Comparison of financial data with data for comparable prior periods, anticipated results (e.g., budgets and forecasts) and similar data for the industry in which the entity operates.
• C) Study of the relationships of elements of financial data that would be expected to conform to a predictable pattern based upon the entity's experience.
• D) Study of the relationships of financial data with relevant nonfinancial data.

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Definitions:

NAACP

The National Association for the Advancement of Colored People, an African-American civil rights organization in the United States founded in 1909 to fight prejudice, lynching, and Jim Crow segregation, and to work for the betterment of "people of color."

Long Telegram

The Long Telegram was a diplomatic message sent in 1946 by George Kennan, an American diplomat in Moscow, to the U.S. Department of State, outlining his views on the Soviet Union and recommending a strategy of containment to combat Soviet expansion during the Cold War.

Jackie Robinson

The first African American to play Major League Baseball in the modern era, breaking the baseball color line in 1947.

Racial Relations

Refers to the dynamics and interactions between people of different racial backgrounds, often highlighting issues of discrimination, inequality, and efforts toward integration and harmony.