Which of the Following Is Not True Regarding Planning Analytical

question 64

Multiple Choice

Which of the following is not true regarding planning analytical procedures performed by the auditor when planning the audit?

• A)The primary planning analytical procedure for stockholders' equity accounts is a comparison of current year account balances with prior year account balances.
• B)If there are unusual or unexpected relationships,the planned audit procedures would be adjusted to address the potential material misstatements.
• C)The auditor should have an expectation as to the nature and magnitude of any account balance changes.
• D)Auditors show focus on just the numbers when performing analytical procedures.

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Definitions:

Marginal Cost

The increase or decrease in the total cost of a production run for making one additional unit of an item.

Marginal Benefit

The additional satisfaction or utility gained by consuming an extra unit of a good or service.

Diamond

A naturally occurring gemstone composed of carbon, known for its hardness and brilliance, often used in jewelry.

Marginal Analysis

The examination of the costs and benefits of a small (marginal) change in the production of goods or services.