The Process of Performing an External Audit Needs to Include

question 75

Multiple Choice

The process of performing an external audit needs to include

• A)primarily front- line supervisors
• B)stockholders and external government agencies
• C)as many managers and employees as possible.
• D)only top level managers,as it's a planning function.
• E)between 15 to 20 managers for it to be valid

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Definitions:

Permanent Account

An account that carries its ending balance over from one accounting period to the next, such as assets, liabilities, and equity accounts.

Doubtful Accounts

Accounts receivable that a company believes it may not be able to collect, often leading to the creation of an allowance for doubtful accounts.

Debits

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet or in its income statement.

Credits

An accounting entry that either increases liabilities and equity or decreases assets, reflective of the dual-entry bookkeeping system.