Which of the Following Is Not a Way an Auditor

question 85

Multiple Choice

Which of the following is not a way an auditor obtains evidence regarding the effectiveness of internal control over the accounting system?

• A)Performing a walkthrough of the accounting system.
• B)Making inquiries of banks and attorneys.
• C)Reviewing system flowcharts.
• D)Taking plant and operational tours.

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Definitions:

Dicta

Comments, observations, or remarks made by a judge in a legal decision or ruling that are not essential to the resolution of the case.

Market Power

Ability of a seller or buyer to affect the price of a good.

Producer Surplus

The gap between the price sellers are willing to accept for their goods or services and what they end up receiving.

Consumer Surplus

The discrepancy between the amount consumers are prepared to pay for a product or service and the amount they end up paying.