1.Certain characteristics of data may affect the relevance and reliability of the data used in the ADA. The level of aggregation is one of these characteristics. Which of the following does not illustrate differing levels of aggregation?

A.Number of annual transactions compared to the number of weekly transactions

B.A consolidated statement compared to a single segment of a statement

C.A total account balance compared to a single transaction within that balance

D.All of the above illustrate differing levels of aggregation

2.When auditing a client in the merchandising business, an auditor became concerned that the client was recording fraudulent credit sales. Which of the following procedures would have most likely alerted them to this potential fraud?

A.Observing the credit sales figure on the income statement

B.Recalculating depreciation on fixed assets

C.Analyzing cash receipts as a percentage of sales by month

D.Analyzing gross profit percentage by class of revenue

3.Analysis of accounts receivable collection periods by region is most likely a part of which of the following types of ADA?

A.Risk assessment procedures

B.Tests of controls

C.Substantive analytical procedures

D.Tests of details