Which of the Following Procedures Would an Auditor Most Likely

question 60

Multiple Choice

Which of the following procedures would an auditor most likely include in the initial planning of a financial statement audit?

• A)Perform detailed testing of the individual balance sheet accounts.
• B)Examining documents to detect illegal acts having a material effect on the financial statements.
• C)Considering whether the client's accounting estimates are reasonable in the circumstances.
• D)Determining the extent of involvement of the client's internal audit function.

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Definitions:

Tariff

A levy placed by a government on goods that are brought into or sent out of a country.

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.

Specific Tariff

A type of tax levied on imports that is based on a specific amount of money per unit of the good imported, rather than on its value.

World Price

The global market price of a product, influenced by worldwide conditions of supply and demand.