Directional Testing Explain the Meaning of "Directional Testing" and Identify

question 14

Essay

Directional testing Explain the meaning of "directional testing" and identify the reasons why directional testing leads to audit efficiency.Give examples of directional testing for the existence and completeness assertions.

---

Definitions:

Monopolistically Competitive

Describing a market structure in which many firms sell products or services that are similar but not identical, allowing for differentiation and some degree of market power.

Short Run

A period in economics during which at least one factor of production is considered fixed, typically focusing on the immediate effects of economic decisions.

Monopolistic

Pertaining to a market structure where there is only one producer or seller for a product or service, limiting competition.

Marginal Revenue

The extra income a company earns by selling an additional unit of a product or service.