Analytical Procedures Used in the Overall Review Stage of an Audit

question 8

Multiple Choice

Analytical procedures used in the overall review stage of an audit generally include ________.

• A)considering unusual or unexpected account balances that were not previously identified
• B)performing tests of transactions to corroborate management's financial statement assertions
• C)gathering evidence concerning account balances that have not changed from the prior year
• D)retesting control procedures that appeared to be ineffective during the assessment of control risk

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Definitions:

Critical Value

In hypothesis testing, the critical value is a point on the test distribution that is compared to the test statistic to decide whether to reject the null hypothesis.

Hypothesis Test

A method of statistical inference used to decide whether a dataset significantly supports a specific hypothesis.

Type II Error

The error that occurs when a false null hypothesis is not rejected, indicating a missed detection of an effect.

Commuted

Traveling regularly over a long distance between one's home and place of work or study.