Briefly Outline Developments in Auditing Theory Associated with I

question 22

Essay

Briefly outline developments in auditing theory associated with i.the normative era,and,ii.the positive era.

---

Definitions:

Compounds Interest Continuously

The process of calculating interest on both the initial principal and the accumulated interest from previous periods, assumed to be compounded infinitely often per period.

Nearest Tenth

Rounding a number to one decimal place, or to the closest tenth.

Compounded Continuously

Refers to the mathematical limit of the compound interest formula, as the number of compounding periods per year becomes infinitely large.

Annual Interest Rate

The percentage increase in money per year, including compounding, that an investment or loan grows.