Analytical Procedures Are Used in an Audit Because It Is

question 39

Multiple Choice

Analytical procedures are used in an audit because it is assumed of financial statements that

• A)management fraud can be discovered using such procedures.
• B)it is plausible that no relationship among data exists.
• C)analytical procedures are used as tests of controls.
• D)plausible relationships among data may reasonably be expected to exist and continue.

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Definitions:

Independent Variable

In experimental and research settings, the variable that is manipulated to observe its effects on a dependent variable.

Internal Validity

The degree to which a study establishes a trustworthy cause-and-effect relationship between a treatment and an outcome.

Experimental Methods

A research methodology in psychology and other sciences involving the manipulation of variables to determine cause and effect relationships.

Biases

Systematic patterns of deviation from norm or rationality in judgment, whereby inferences about other people and situations may be drawn in an illogical fashion.