For an Auditor to Make the Decision About Whether a Change

question 98

Multiple Choice

For an auditor to make the decision about whether a change noted in analytical procedures is unreasonable he needs

• A)knowledge of the client's inventory
• B)knowledge of current political conditions
• C)knowledge of current economic conditions
• D)an understanding of the client's competitors
• E)an understanding of the business under audit
• F)both A and C
• G)both B and D
• H)Both C and E

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Definitions:

Mexican Stock Exchange

The primary securities marketplace in Mexico, where stocks, bonds, and other financial instruments are traded.

Statutory Insiders

Certain large stockholders, executive officers, and directors who are deemed insiders by the Securities Exchange Act of 1934.

Securities Exchange Act

A U.S. law governing the trading of securities, such as stocks and bonds, to protect investors against fraud.

Blue-Sky Laws

State laws in the United States designed to protect investors from securities fraud by regulating the offering and sale of securities to the public.