The Three Main Ingredients to an Audit Are Auditing Principles

question 64

Multiple Choice

The three main ingredients to an audit are auditing principles, auditing standards, and auditing ________.

• A) procedures
• B) experts
• C) accountants
• D) information systems
• E) ethics

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Definitions:

Investing Section

Part of a company's cash flow statement that shows cash inflows and outflows related to investments in securities, property, and equipment.

Financing Section

A part of financial statements that includes activities related to issuing debt, repayment of debt, issuing equity, and paying dividends.

Cash Outflow

Pertains to the movement of money out of a business, primarily through expenses, payments to creditors, or investments, leading to a decrease in cash balance.

Financing Activity

Involves transactions related to a business's funding, including obtaining or repaying capital, issuing shares, and paying dividends.