The Audit Procedure Which Requires the Auditor to Record the Last

question 113

Multiple Choice

The audit procedure which requires the auditor to record the last cheque number used on the last day of the year and subsequently trace to the outstanding cheques and the cash payments journal is performed to satisfy the audit objective of:

• A) detail tie- in.
• B) completeness.
• C) existence.
• D) cutoff.

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Definitions:

Incidental Damages

Expenses reasonably incurred by one party due to another party's breach of contract, such as costs to mitigate damages or to obtain substitute performance.

Arise Directly

Refers to issues or consequences that occur as a direct result of an action or event, with no intermediary steps.

Restitution

Restitution is the act of compensating for loss or damage caused by one’s actions, often involving the return of stolen goods or payment of money to cover damages.

Voidable Contract

A contract that is valid and enforceable on the surface, but can be declared void by one of the parties due to certain defects.