When Substantive Tests Performed Identify Errors or Exceptions, the Auditor's

question 18

Multiple Choice

When substantive tests performed identify errors or exceptions, the auditor's first response is to:

• A) qualify the audit report.
• B) report the client to CICA.
• C) understand why the exception or error has arisen.
• D) none of the above.

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Definitions:

Salespersons' Estimates

Salespersons' estimates are forecasts or predictions made by sales professionals regarding future sales volumes based on their experience, market knowledge, and existing trends.

Demand Forecasts

The process of estimating the future demand for a company's products or services based on historical sales data, market trends, and other factors.

Alpha

A coefficient in finance representing the performance of an investment relative to a suitable market index.

Exponential Smoothing

A weighted moving average method that is used in time series forecasting to smooth out data and predict future points.