One Way an Auditor Gauges How Much Audit Work and Testing

question 24

Multiple Choice

One way an auditor gauges how much audit work and testing needs to be performed is through evaluating materiality and seeking reasonable assurance about the nature of the information or process.What is key to determining materiality during an audit?

• A)determining if material errors exist in the information or processes undergoing audit
• B)the testing of records,account balances,and procedures on a sample basis
• C)determining what is and is not important given a set of circumstances is primarily a matter of judgment
• D)none of the above

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Definitions:

Damages

Compensation sought or awarded in a legal process for loss or injury that has been suffered by an individual or entity.

Sublessee

An individual or entity that rents or leases property from a lessee rather than directly from the original owner.

Routine Care

Basic or regular maintenance or treatment that is provided for the normal and everyday healthcare needs.

Implied Warranty

A warranty not explicitly stated but legally inferred to provide assurance that a product or service will meet certain standards.