"Computer assisted audit techniques and audit data analytics have steadily reduced the number of situations in which audit sampling is necessary and, in the future, will probably eliminate the need for auditors to rely on sampling." Defend or refute the preceding statement.
What will be an ideal response?
Computer assisted audit techniques and audit data analytics will not likely eliminate the need for auditors to rely on sampling to some degree because (1) many control processes require human involvement to operate effectively, (2) many testing procedures require the auditor to physically examine certain items (such as tangible assets), (3) in many cases, auditors are required to obtain and examine evidence from third parties. In a large population, these situations all require both sampling and an auditor's "hands-on" attention and judgment, and (4) audit data analytics are only as good as the quality of the underlying data and often the completeness, accuracy, and validity of the underlying data need to be tested and sampling can be an effective and efficient technique.
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Which of the following statements is true of the Mexican economy?
A) Since the formation of EFTA, Mexico has been modernizing its infrastructure. B) Immigrant workers from Mexico fill the need for low-cost labor in the U.S. C) Over 80 percent of Mexico's trade is with Canada. D) Americans have invested more in Mexico than any other foreign land.
Finding out how sources conduct fact checking will help ensure what?
A) The information is independently verified. B) The material was designed to support the outcome. C) The source used proper methods to collect its data. D) The source has a reputation for honesty and reliability. E) The author is credible.
Strategic power used in the coalition-formation process
A. derives from what parties consider a fair or just distribution of the outcomes and results of a coalition. B. emerges from the availability of alternative coalition partners. C. is dependent on which party's arguments ultimately shape the allocation rule used by the group. D. is shaped by the compatibility of preferences between two or more parties.
Which of the following statements is true of intentional misrepresentation?
A. Generally, in a negligence or contract action, the client is limited to recovering compensatory damages. B. Under a punitive damage award, the client will always receive a lesser amount than his actual loss. C. Generally, if an accountant is found liable in fraud, the client is not entitled to recover punitive damages. D. An accountant cannot be liable in fraud for any losses suffered by the client from the time when the audit should have discovered the embezzlement.