The Auditor Uses the "Reperformance" Procedure When He

question 62

Multiple Choice

The auditor uses the "reperformance" procedure when he

• A)reviews the design of the procedures or controls that were originally performed by the client as part of the company's internal controls.
• B)analyzes the procedures or controls that were originally performed by the client as part of the company's internal controls.
• C)executes the procedures or controls that were originally performed by the client as part of the company's internal controls.
• D)reviews the procedures or controls that were originally performed by the client as part of the company's internal controls.

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Definitions:

Consumer Surplus

The difference in the total amount consumers are capable of paying for a good or service versus what they really pay.

Producer Surplus

The divergence between what producers expect to get for a good or service and the actual compensation they receive.

Deadweight Loss

The loss of economic efficiency when the equilibrium outcome is not achievable or not achieved in a market.

Perfectly Inelastic

A market condition where the quantity demanded or supplied does not change in response to price changes.