A Large Part of the Work Performed by an Auditor

question 4

Multiple Choice

A large part of the work performed by an auditor in the audit planning process is the gathering of evidence about the company's internal controls.This can be completed in any of the following ways, except:

• A)Interviewing key members of the accounting and IT staff
• B)Observing policies and procedures
• C)Review IT user manuals and systems
• D)Preparing memos to summarize their findings

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Definitions:

Credit

The ability of a consumer to obtain goods or services before payment, based on the trust that payment will be made in the future.

Sample

A portion, piece, or segment taken from something larger to represent the quality, style, or nature of the whole.

Merchantability

An implied warranty that goods sold by a merchant are reasonably fit for the general purpose for which they are sold.

Fungible Goods

Items that are interchangeable with others of the same type because they are identical in essence and value, such as grains or precious metals.