
Identify where the analytical techniques cannot be implemented by the individuals building teams.

Answer to Problem 1MCQ
Option c.
Explanation of Solution
Under the guidance of the chief audit executive (CAE) or another manager, these individuals build teams to develop and implement analytical techniques to aid the following audits:
- Process efficiency and effectiveness.
- Governance, risk, and compliance, including internal controls effectiveness.
- Information technology and information systems audits.
- Forensic audits in the case of fraud.
- Support for the financial statement audit.
Justification for correct and incorrect answer:
a.
This is not the correct choice as these individuals build teams to develop and implement analytical techniques to aid all of the following audits except tax compliance.
b.
This option is an incorrect option because all these factors are included in the audits which are aided by the individuals who build teams to develop and implement analytical techniques.
c.
Under the guidance of the Chief Audit Executive (CAE) or another manager, these individuals build teams to develop and implement analytical techniques to aid all of the following audits except tax compliance. Thus, this option is correct.
d.
This is an incorrect option because these individuals build teams to develop and implement analytical techniques to aid all of the following audits except tax compliance and support for the financial statement audit.
Want to see more full solutions like this?
Chapter 5 Solutions
Data Analytics For Accounting
- Dunwell Industries produced 8,500 units during March. The standard quantity of material allowed per unit was 10 pounds at a standard cost of $3.60 per pound. If there was an unfavorable usage variance of $18,360 for March, what amount must be the actual quantity of materials used?arrow_forwardAccounting solutionarrow_forwardI need help with this general accounting question using the proper accounting approach.arrow_forward
- Need Answerarrow_forwardTesla Car Service started the year with total assets of $320,000 and total liabilities of $210,000. During the year, the business recorded $510,000 in revenues, $370,000 in expenses, and dividends of $45,000. What is the net income reported by Tesla Car Service for the year?arrow_forwardThe direct materials quantity variance isarrow_forward
- Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage LearningAuditing: A Risk Based-Approach to Conducting a Q...AccountingISBN:9781305080577Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:South-Western College Pub

