The Extent of Procedures Is Affected Mostly by Which of the Following

question 60

Multiple Choice

The extent of procedures is affected mostly by which of the following factors?

• A)The sheer volume of procedures to be applied by the auditor.
• B)The time of year in which the client takes a physical inventory in the warehouse.
• C)The auditor's judgment that misstatements are probable in certain balances.
• D)The availability of the client's staff at or near the balance sheet date.

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Definitions:

Sales Tax Revenue

The income received by a government from the imposition of a tax on the sale of goods and services.

Sales Revenue

The earnings accumulated from the sale of products or services during a specific timeframe.

Cash

A company's most liquid asset, representing currency or assets that can be immediately converted into currency.

Sales Tax Payable

A liability account that represents the sales tax collected from customers by a selling entity and owed to the tax authority.