Which of the Following Is NOT Audit Evidence

question 114

Multiple Choice

Which of the following is NOT audit evidence?

• A) Written confirmations from accounts receivable
• B) Collecting a sample of 200 sales invoices
• C) Cancelled cheques
• D) Comparison of prices of an invoice to an approved price list

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Definitions:

Nominal Interest Rate

The stated or named interest rate on a loan or investment, not accounting for inflation or compounding effects.

Compounded Monthly

Interest that is calculated and added to the account balance every month.

Periodic Interest Rate

The interest rate charged or paid over a specific period of time, often monthly, quarterly, or annually.

Conditional Sale Contracts

Agreements where the sale of goods or property is conditional upon certain terms, typically the buyer making payments over a period, with the title remaining with the seller until conditions are met.