The Two Most Important Audit Procedures for Prepayments Are

question 20

Multiple Choice

The two most important audit procedures for prepayments are:

• A) tests of controls and substantive tests of transactions.
• B) tests for reasonableness or plausible relationships using analytical procedures and recalculation.
• C) consistency and accounting standards.
• D) tests of controls and tests of details of balances.

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Definitions:

Concrete Operational

A stage in Piaget's theory of cognitive development where children gain the ability to think logically about concrete events.

Formal Operational

The stage in Piaget's theory of cognitive development during which people develop the ability to think about abstract concepts and logically test hypotheses.

Cognitive Capacities

The mental abilities or faculties related to the processing of information, perception, reasoning, and memory.

Piaget

A Swiss psychologist renowned for his groundbreaking work in child development, specifically his theory of cognitive development that outlines how children progress through four stages of mental development.