Which One of the Following Is NOT One of the Three

question 56

Multiple Choice

Which one of the following is NOT one of the three main reasons why it is essential that working papers be thoroughly reviewed by another member of the audit firm at the completion of the audit?

• A) To evaluate the accuracy of the auditing firm's time budget for the engagement
• B) To counteract the bias that frequently enters into the auditor's judgement
• C) To make sure that the audit meets the firm's standard of performance
• D) To evaluate the performance of inexperienced personnel

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Definitions:

Capitalize Interest

The process of adding the interest accrued on a loan to the principal balance of that loan, effectively increasing the total amount owed.

Finance Charges

Fees and interest charged on borrowed money, typically associated with loans, credit cards, and financed purchases.

Credit Card Company

A financial institution that issues credit cards, allowing cardholders to purchase goods and services on credit.

Installment Plan

A method of payment of a purchase or services over a period of time.