Which of the Following Audit Procedures Is Most Likely to Be

question 31

Multiple Choice

Which of the following audit procedures is most likely to be performed during the planning phase of the audit?

• A)Obtain an understanding of the client's risk assessment process.
• B)Identify specific internal control activities that are designed to prevent fraud.
• C)Evaluate the reasonableness of the client's accounting estimates.
• D)Test the timely cutoff of cash payments and collections.

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Definitions:

Decision Making

Decision Making involves selecting a course of action from several alternatives and is a critical aspect of cognitive processes.

Ski Resort

A place that offers facilities and terrain for skiing, snowboarding, and other winter sports.

Babysitting Rates

The hourly or fixed charge applied for the service of caring for children in the absence of their primary guardians or parents.

Reasoning

The mental process of generating conclusions, judgments, or inferences based on facts, premises, or evidence.