Audit Documentation

question 15

Multiple Choice

Audit documentation

• A)is referred to as working papers or workpapers
• B)includes a record of the audit procedures the auditor might choose to perform
• C)includes a record of the audit evidence obtained
• D)includes a record of the assumptions reached by the auditor from a review of the evidence
• E)may not be recorded on paper
• F)Both A and B
• G)Both A and C

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Definitions:

Sample Information

Data or observations collected from a portion of a population, used to make inferences about the whole population.

States Of Nature

Alternative conditions or scenarios in decision-making, reflecting different possible outcomes that are generally outside the control of the decision maker, with their uncertainties critical in risk analysis and management.

Expected Opportunity Loss

The anticipated loss in value resulting from not choosing the best action or decision under uncertainty.

Perfect Information

A theoretical concept where all participants have access to all relevant information, making fully informed decisions possible.