Observation and Inspection May Provide the Auditor with Useful Information

question 73

Multiple Choice

Observation and inspection may provide the auditor with useful information to support the information obtained from management and other employees related to the risk of material misstatement.The auditor might observe or inspect

• A)the entity's forecasts
• B)documents,records and internal control manuals
• C)decisions prepared by management
• D)the entity's plans and office expenses

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Definitions:

Likely Viewer

A term used to describe someone who is considered a probable audience member for a particular television show, movie, or event based on certain criteria.

Unlikely Viewer

A person or demographic that is not expected to be interested in viewing certain content or media.

Probability

A numerical scale from 0 to 1 that articulates the chances or probability of an event taking place.

Statistics Class

A statistics class is an educational course focused on the study of data collection, analysis, interpretation, presentation, and organization, involving various statistical methods and theories.