The Auditor Has a Variety of Auditing Techniques That Might

question 25

Multiple Choice

The auditor has a variety of auditing techniques that might be used to gather evidence about the effectiveness of control.These include

• A)confirmation of the application of the control
• B)gathering of documents,reports,or computer files
• C)observation of the application of the control
• D)inspecting the control again

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Definitions:

Feasible Allocation

In economics, it refers to the distribution of resources or goods in such a manner that it is possible given the available supply.

Second Welfare Theorem

An economic principle stating that under certain conditions, any efficient allocation of resources can be attained through a competitive equilibrium, assuming perfect markets and price flexibility.

Pareto Optimal

A distribution state of resources where trying to improve the status of one individual inevitably leads to the decline of another's.

Competitive Equilibrium

A state in a market-based economy where supply equals demand, and prices are stable, facilitating the optimal distribution of resources.