5 PTS General Accounting: How does causal analysis enhancevariance investigation? [5 PTS]a) Standard variances need no investigationb) Surface differences explain everythingc) Root cause identification guides corrective actionsd) Analysis wastes resources

Option a: This option is incorrect because standard variances require investigation. Even if it is a…

Answered: General Accounting: How does causal…

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter17: Other Services Provided By Audit Firms

Section: Chapter Questions

Problem 26MCQ

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Using a wrong formula for CAPM is a __ (select one) a. Erronous model risk b. Market data processing risk c. Incorrect calibration risk d. Incorrect implementation risk
Which of the following is not one of the main issues regarding data collection which can significantly affect precision and reliability when using regression or any other cost estimation method? Multiple Choice Time period choice. Nonlinearity. Relevant range. Data accuracy.
The risk associated with inefficient use of inputs or over-provision of services is ⚫ A. An actuarial risk • B. A utilization risk⚫ C. A cost risk. D. A financial risk
Forecasting that uses subjective analysis of subjective inputs is called O Judgmental forecast C Associative Models O Time Series O Hypothesis Testing O Descriptive Statistics
What is the underlying cause of ranking conflicts between NPV and IRR?
Which of the following statements is false regarding planning analytical procedures in the revenue cycle? a. As revenue is typically regarded as a high-risk account, planning analytical procedures related to revenue are not required. b. The first step in planning analytical procedures includes developing an expectation of recorded amounts or ratios, and evaluating whether that expectation is precise enough to accomplish the relevant objective. c. Trend analysis would not be appropriate as a plan-fling analytical procedure in the revenue cycle. d. All of the above statements are false.
Obtaining regression estimates for cost estimation requires establishing the existence of a logical relation between activities and the cost to be estimated. Which of the following is not used to refer to these activities? Multiple Choice predictors. dependent variables. X terms. independent variables.
The "what-if" technique of altering certain key variables to assess the impact on the original outcome is called a break-even analysis least squares analysis regression analysis sensitivity analysis
Why do you believe that data can be inaccurate?
6. Which of the following is NOT an advantage of using sensitivity analysis? A It identifies the impact a change in an estimate would have on the result B It gives an idea of the worst possible outcome C It shows where further investigation might be useful D It provides useful information for decision making
How will management know if one of the hypotheses underlying the balanced scorecard is false?
Which of the following is NOT true about simulation models? Option- a. Simulations can be used to analyze processes that cannot be evaluated well analytically. b. A simulation model is used to get estimates; an analytical model provides detailed analysis. c. Simulations can use actual probability rates for both demand and service rates. d. Analytical and simulation models are often used in combination.

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General Accounting: How does causal analysis enhance variance investigation? [5 PTS] a) Standard variances need no investigation b) Surface differences explain everything c) Root cause identification guides corrective actions d) Analysis wastes resources