Chapter 4 M_CH

Chapter 4 M_CH - 4.26 a.Incorrect b.Incorrect c.Incorrect...

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4.26. a. Incorrect b. Incorrect c. Incorrect d. Correct. AP are reasonable test, the audit team is comparing its estimates of account  balances with those recorded by management. Variety of sources can provide evidence  of the balance in particular account. Audit team use current-year account balances and  balances for one or more comparable periods. 4.27. a. Incorrect. b. Correct. The purpose of applying analytical procedures in planning the audit is to assist  in planning the nature, timing, and extent of auditing procedures that will be used to  obtain audit evidence for specific account balances or classes of transactions. To  accomplish this, the analytical procedures used in planning the audit should focus on ( a enhancing the auditor's understanding of the client's business and the transactions and  events that have occurred since the last audit date, and ( b ) identifying areas that may  represent specific risks relevant to the audit.
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Chapter 4 M_CH - 4.26 a.Incorrect b.Incorrect c.Incorrect...

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