When Using the Cycle Approach to Segmenting the Audit, the Reason

question 34

Multiple Choice

When using the cycle approach to segmenting the audit, the reason for treating capital acquisition and repayment separately from the acquisition of goods and services is that:

• A) most capital acquisition and repayment cycle accounts involve few transactions, but each is often highly material and therefore should be audited extensively.
• B) the transactions are related to financing a company rather than to its operations.
• C) both A and B above
• D) neither A nor B above

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Definitions:

Validating Input Data

The process of checking if the data entered by the user meets certain criteria before being accepted by the program.

Numbers

The basic data type used in programming to represent numeric values, including integers and floating-point numbers.

Strings

Sequences of characters used to represent text in computer programming.

Control String

A parameter in programming functions that determines the output or behavior of the function, often seen in formatting functions.