Audit Objectives Set Forth by the United States Comptroller General

question 53

Essay

Audit objectives set forth by the United States Comptroller General in Government Auditing Standards (GAS)differ from the AICPA view (GAAS)as discussed in Chapter 12.Explain briefly how GAS audits might meet the information needs of taxpayers better than GAAS audits.Make clear what the two sets of objectives cover.

Understand the effects of changes in supply and demand on equilibrium price and quantity.

Analyze the impact of external factors on supply and demand curves.

Predict the market outcomes of shifts in supply and/or demand.

Assess the relationship between price changes and movements along or shifts of the supply and demand curves.

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Definitions:

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution, typically in the context of parameters estimated from sample data.

F Statistic

A ratio used in analysis of variance (ANOVA) tests to determine whether the group means are statistically different from each other.

Interaction

In statistics, the way in which two or more variables are related in a non-additive manner when affecting a response variable.

Tension Modulus

The ratio of tensile stress to tensile strain in a material, reflecting its stiffness or elasticity under tension.