Analytical Procedures Are Conducted at the Planning Stage of the Audit

question 49

Multiple Choice

Analytical procedures are conducted at the planning stage of the audit to:

• A) aid in the identification of risk.
• B) identify where fraud has occurred.
• C) enhance the understanding of a client.
• D) both a and c

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Definitions:

Approximately Normal

A distribution is said to be approximately normal if it closely follows a normal distribution, characterized by its bell-shaped curve.

Probability

A measure of the likelihood that an event will occur, represented as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Random Sample

A sample in which each member of the population has an equal probability of being selected, aiming for a representative subset.

Standard Error

A statistical measure that indicates the accuracy of a sample mean by estimating the dispersion of sample means around the population mean.