PCAOB Auditing Standard No

question 27

Multiple Choice

PCAOB Auditing Standard No. 3 AS3, Audit Documentation, requires that audit engagement documentation should include a list of all EXCEPT:

• A)significant fraud risk factors.
• B)the auditor’s response.
• C)the results of the auditor’s related procedures.
• D)List of the internal controls.

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Definitions:

Holt's Model

A forecasting technique that extends exponential smoothing to allow forecasting of data with a trend.

Trend Component

An underlying pattern in data that shows a persistent, general direction of movement over time.

Simple Exponential Smoothing

A time series forecasting method for univariate data that applies decreasing weights to past observations as they age.

Mean Absolute Deviation

A statistical measure of the dispersion or variability in a data set, calculated as the average distance between each data point and the mean of the data set.