Some Critics Claim the Usefulness of the Audit Report Is

question 51

Multiple Choice

Some critics claim the usefulness of the audit report is limited because:

• A) Auditors do not examine management's estimates and judgments
• B) Language in the audit report relies on subjective evaluations such as what is meant by "reasonable"
• C) Transactions examined are based on sampling and other techniques to limit choices of which transactions to audit
• D) Auditor's examine all of the company's transactions.

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Definitions:

Petty Cash

A small amount of cash kept on hand for making immediate payments for small expenses.

Cash Over and Short

An account that records discrepancies between physical cash and recorded amounts due to errors or theft.

Journal Entry

A record of a financial transaction that includes the date of the transaction, the affected accounts, the amounts, and a brief description.

Petty Cash

A small amount of cash on hand used for minor, incidental expenses of a business to avoid writing checks.