The Auditor Performs Analytical Procedures to

question 69

Multiple Choice

The auditor performs analytical procedures to

• A)increase his understanding of the accounting system
• B)identify expected changes between his expectations for the current year and the prior year
• C)identify areas where he believes the risk of material misstatement might be present
• D)satisfy the requirement of the auditing standards to use analytical procedures during the testing stage

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Definitions:

Variability

The extent to which data points in a statistical distribution or dataset differ from the average or mean value.

Median

The middle value in a sorted, ascending or descending, list of numbers.

Mean

The average value of a set of numbers, calculated by dividing the sum of all the values by the count of the values.

Observations

Records or measurements of variables or phenomena of interest, collected during an experiment or study.