Which of the Following Generic Steps in a Financial Statement

question 12

Multiple Choice

Which of the following generic steps in a financial statement audit should occur last?

• A)Issue the audit report.
• B)Perform compliance testing.
• C)Review the internal control system.
• D)Evaluate management's credentials.

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Definitions:

Option Contract

A financial derivative that represents a contract sold by one party to another, offering the buyer the right, but not the obligation, to buy (call) or sell (put) a security at an agreed-upon price within a certain period of time.

Forward Contract

An agreement between two entities that is not regulated, outlining the purchase or sale of an asset at a predetermined future date for a price that is decided upon at the current time.

Obligation

A legal or financial duty to make a payment or fulfill a contract.

Futures Contracts

Financial contracts obligating the buyer to purchase an asset, or the seller to sell an asset, at a predetermined future date and price.