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:

Innovation

The introduction of something new, such as an idea, method, or device, often leading to improvements or significant changes in a field or industry.

Engineering

The application of scientific, mathematical, and empirical evidence to design, build, and maintain structures, machines, devices, systems, and processes.

Innovation

The process of creating new ideas, products, or methods, improving on or making significant contributions to existing ones.

Small Business

Enterprises with limited revenue and number of employees, typically independently owned and operated.