One Means of Informing the Client That the Auditor Is

question 73

Multiple Choice

One means of informing the client that the auditor is NOT responsible for the discovery of all acts of fraud is the:

• A) engagement letter.
• B) representation letter.
• C) responsibility letter.
• D) client letter.

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Definitions:

Trial Balance

A bookkeeping worksheet where the balances of all ledgers are compiled into debit and credit account column totals that are equal.

Trial Balance

A ledger balance compilation sheet in bookkeeping, organizing debit and credit balances into columns that have equal totals.

Financial Statement Order

The sequence in which financial reports, such as the balance sheet, income statement, and cash flow statement, are prepared and presented.

Recording Process

The systematic method of capturing all changes in financial information in a set period, typically through the use of journals and ledgers in accounting.