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:

Profit Center

A responsibility center that incurs costs and also generates revenues.

Average Operating Assets

The average value of the assets used in the normal operations of a business over a certain period, often used in evaluating the performance of investment centers.

Controllable Margin

A financial metric used to assess the amount of profit that can be controlled or influenced by managerial decisions.

Cost Center

A responsibility center that incurs costs but does not directly generate revenues.