Auditors Often Use Analytical Procedures in Gathering Audit Evidence

question 86

Multiple Choice

Auditors often use analytical procedures in gathering audit evidence. For example, an unexplained decrease in the amount of accounts receivable may indicate:

• A) Sales were overstated.
• B) Inventory purchases were curtailed.
• C) Cost of Goods sold was overstated.
• D) Accounts Receivables were sold.

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Definitions:

Role Expectations

The behaviors, duties, and responsibilities expected from an individual in a particular social or functional position.

Social Control

Mechanisms, strategies, and institutions society uses to regulate individual and group behavior to conform to societal norms and rules.

Minority Influence

Describes a situation where a smaller group within a larger society can influence the majority to accept their beliefs or behaviors.

Peripheral Route Persuasion

A method of persuasion that relies on superficial cues to promote acceptance of an argument, rather than logical reasoning.