Which of the Following Are the Main Types of Analytical

question 68

Multiple Choice

Which of the following are the main types of analytical procedures used by auditors?

• A)the auditor calculates the financial statement numbers for the current year and the previous year
• B)the auditor compares the financial statement transactions for the current year to the previous year
• C)the auditor compares the financial statement numbers for the current year to the previous year
• D)the auditor calculates financial ratios for the current balance sheet and compares them to ratios for the prior year income statement
• E)the auditor calculates financial ratios for the current financial statements and compares them to ratios for the prior year financial statements
• F)both A and B
• G)both C and E
• H)both D and E

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Definitions:

External Cost

A cost borne by individuals or society that is not reflected in the market price of a good or service, often associated with negative externalities.

Socially Optimal

A condition or point at which the welfare of a society reaches its highest possible level, considering all factors and resources.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity of that good that suppliers are willing and able to provide.