Directional Testing Creates Audit Efficiency by Taking Advantage of the Double-Entry

question 34

Multiple Choice

Directional testing creates audit efficiency by taking advantage of the double-entry bookkeeping system.Which of the following is not a primary reason for this effect?

• A)misstatement of some accounts are more likely to occur in one direction than the other.
• B)increase the persuasiveness of the evidence.
• C)provides evidence on a complementary set of accounts.
• D)some assertions are directional by nature.

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Definitions:

Vertical Differentiation

Refers to the process of ranking various products, services, or individuals based on quality or prestige rather than quantity or access.

Structural Functionalism

A sociological perspective that views society as a complex system whose parts work together to promote solidarity and stability.

Functional Differentiation

A concept in sociology and systems theory that describes the process by which social systems evolve by differentiating specific subsystems to handle specific functions or tasks.

Inside Elements

Fundamental or essential components that exist or operate within a particular system or context.