Analytical Procedures Used in the Overall Review Stage of an Audit

question 8

Multiple Choice

Analytical procedures used in the overall review stage of an audit generally include ________.

• A)considering unusual or unexpected account balances that were not previously identified
• B)performing tests of transactions to corroborate management's financial statement assertions
• C)gathering evidence concerning account balances that have not changed from the prior year
• D)retesting control procedures that appeared to be ineffective during the assessment of control risk

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Definitions:

Federal Estate

The estate of a deceased person that is subject to Federal estate taxes, which are taxes imposed on the transfer of the decedent's assets.

Abatement

The reduction, decrease, or relief from severity, intensity, or intensity of something, often used in the context of tax, rent, or environmental hazards.

Ademption

The situation in wills and estates where a specific bequest cannot be distributed because the item no longer exists in the decedent's estate.