Question

Which of the procedures provides the highest level of assurance? A. Performing a year over year flux analysis to identify variances over 10% for fixed asset amortization expense, with all fixed asset categories reviewed together (i.e., at the financial statement line item level). B. Inquiry of management about changes in the level of sales revenue during the period based on our leadsheet analysis. C. Testing a judgmental sample of 5 items selected randomly from a large population, which represents less than 10% of total monetary balance of the population. D. SAP performed to directly address the risk of material misstatement being tested with a moderately precise expectation (based on information from independent sources) and variance threshold not greater than 2x TE.

          Which of the procedures provides the highest level of assurance?
A. Performing a year over year flux analysis to identify variances over 10% for fixed asset amortization expense, with all fixed asset categories reviewed together (i.e., at the financial statement line item level).
B. Inquiry of management about changes in the level of sales revenue during the period based on our leadsheet analysis.
C. Testing a judgmental sample of 5 items selected randomly from a large population, which represents less than 10% of total monetary balance of the population.
D. SAP performed to directly address the risk of material misstatement being tested with a moderately precise expectation (based on information from independent sources) and variance threshold not greater than 2x TE.

Added by Elle G.

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