Which of the Following Types of Evidence Is an Auditor

question 96

Multiple Choice

Which of the following types of evidence is an auditor most likely to consider in determining whether internal controls are operating as designed?

• A)A letter from management corroborating inventory pricing.
• B)Questionnaires completed by employees in the receiving department concerning their duties and responsibilities.
• C)Attorneys' responses to the auditor's inquiries.
• D)Direct confirmations of receivables verifying account balances.

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Definitions:

Industry Supply

The total quantity of a product or service that is available for purchase in a specific industry at a given price and time.

Transport Cost

Expenses associated with the movement of goods or people from one location to another.

Land Rent

Payment made for the use of land, typically in agriculture, business, or as part of real estate transactions.

Marginal Costs

The added expense resulting from making one more unit of a product or service.