For an Auditor to Make the Decision About Whether a Change

question 28

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

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Definitions:

Creativity And Innovation

The ability to generate new ideas, solutions, or products and the process of implementing these novel solutions in practice.

Exploitative Innovation

Innovation strategies that focus on improving or optimizing existing products, services, or processes within an organization.

Enhancement

The process of improving or augmenting the quality, value, or strength of something.

Innovation Sparcity

The lack or infrequent occurrence of creative or novel ideas, methods, or products in a specific area or domain.