What Is the First Phase in an Audit

question 118

Multiple Choice

What is the first phase in an audit?

• A)Client acceptance or client continuance.
• B)Understanding the client.
• C)Understanding internal controls.
• D)Testing of account balances.

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Definitions:

Bonds Payable

Long-term debt instruments issued by a company to raise capital, with the promise to pay back with interest at a future date.

Direct Method

A cash flow statement formulation approach that lists major classes of gross cash receipts and payments.

Cash Received

The total amount of money received by a company during a specific period, including revenues, investments, and other sources of income.

Accounts Receivable

Amounts owed to a company by customers for goods or services that have been delivered but not yet paid for.