Audit Procedures
Discuss How Each of the Following Procedures Could

question 101

Essay

Audit procedures
Discuss how each of the following procedures could be used in the audit of fixed assets, e.g., various types of equipment used in the business.
$\begin{array} { lll } \text { Procedure } & \text { How used } &\text { Assertion(s) tested }\\\text { Observation } \\\text { Physical examination } \\\text { Inquiry } \\\text { Confirmation } \\\text { Examination of documents } \\\text { Recomputation } \\\text { Reprocessing } \\\text { Vouching } \\\text { Analytical } \\\text { Procedures }\end{array}$

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Definitions:

Coefficient of Determination

A statistical measure represented by R-squared, indicating the proportion of the variance in the dependent variable predictable from the independent variable(s).

Unexplained Variation

The portion of the total variation in a set of data that cannot be attributed to the variables considered in a study or model.

Unbiased Estimator

A statistic used to estimate a parameter of a population that, on average, exactly equals the true parameter.

Variance

Variance measures the dispersion of a set of data points around their mean value, quantifying how spread out the data points are.