Which of the Following Is a Substantive Procedure in the Audit

question 3

Multiple Choice

Which of the following is a substantive procedure in the audit of estimates made by auditor?

• A)Observing whether estimates are prepared by qualified personnel.
• B)Recalculating the mathematical estimate.
• C)Scanning for evidence of review by senior management.
• D)Ensuring estimates are recorded in the right accounts.

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Definitions:

Directionality

The characteristic of a relationship in statistics that indicates if one variable increases as the other variable increases or decreases.

American Psychological Association

A professional organization representing psychologists in the United States, also known for its publication standards for research.

Bar Charts

A graphical representation of data using bars of different heights or lengths to compare various categories.

Frequency Polygons

A graphical device for understanding the shapes of distributions. They are a kind of line graph that shows the frequency of a set of data.