Analytical Procedures Are Substantive Tests And, If the Results of the Analytical

question 19

Multiple Choice

Analytical procedures are substantive tests and, if the results of the analytical procedures are favorable, the auditor would normally

• A) reduce the extent of tests of details of balances.
• B) reduce the extent of tests of controls.
• C) reduce the tests of transactions.
• D) reduce all of the other tests.

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Definitions:

Economic Value

The worth of a good or service determined by its ability to satisfy needs or wants; measured by the maximum amount a consumer is willing to pay.

Interest Rate

The proportion of a total amount of money that is required as payment for borrowing it, usually described as a yearly percentage rate.

Equivalent

Something that is equal in value, function, amount, or meaning to something else.

Invested

Refers to the allocation of resources, often money, in expectation of generating an income or profit.