Audit Documentation Should Include the Initials or Electronic Signature in Order

question 57

True/False

Audit documentation should include the initials or electronic signature in order to identify the audit personnel responsible for the work and the managers and partners reviewing the work.

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Definitions:

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, listing revenues and expenses to show net profit or loss.

Balance Sheet

A financial statement that displays a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Adjusting Entries

Entries made in financial ledgers at the end of a bookkeeping period to accurately distribute incomes and spending to the intervals in which they factually transpired.

Accrued Salaries

Salaries that have been earned but not yet paid out to employees.