Which One of the Following Procedures Is Not a Standard

question 68

Multiple Choice

Which one of the following procedures is not a standard procedure when performing a review?

• A) Assess the internal control over financial reporting.
• B) Read the financial statements to determine whether they appear to conform to GAAP.
• C) Obtain or prepare a trial balance of the general ledger and foot and reconcile it to the general ledger.
• D) Trace the financial statement amounts to the trial balance.

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Definitions:

Marginal Revenue

The income boost obtained through the sale of one extra unit of a product or service.

Pure Competition

A market structure characterized by an extremely high level of competition, where no single buyer or seller can influence the market price.

Advertising

The activity or profession of producing advertisements for commercial products or services to influence consumer behavior.

Purely Competitive Industry

An industry structure where many firms offer a standardized product, entry and exit are easy, and no single supplier controls the market price.