The Auditor Performs Analytical Procedures to

question 68

Multiple Choice

The auditor performs analytical procedures to

• A)increase his understanding of the accounting system
• B)identify unexpected changes between his expectations for the current year and the prior year
• C)identify areas where he believes the risk of material misstatement might not be present
• D)satisfy the requirement of the auditing standards to use analytical procedures during the testing stage

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Definitions:

Right Impression

The act of presenting oneself in a manner that is perceived positively or as intended by others.

Fraudulent Misrepresentation

(1) The tort that occurs when a misrepresentation is made with intent to facilitate personal gain and with the knowledge that it is false. (2) In contracts, a false representation of a material fact that is consciously false and is intended to mislead the other party. Also called intentional misrepresentation.

Intent To Deceive

The deliberate intention to mislead or trick someone into believing something that is not true.

Nondisclosure

The failure to provide pertinent information about a projected contract.