Which of the Following Is NOT a Technique Used by an Auditor

question 37

Multiple Choice

Which of the following is NOT a technique used by an auditor in a performance audit engagement to gain an understanding of the controls in place to assure that a program meets its objective?

• A)Reading the legislation.
• B)Making inquiries of employees.
• C)Flow-charting appropriate systems.
• D)Preparing and administering questionnaires.

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Definitions:

Inventory Turnover

A measure of how often a company's inventory is sold and replaced over a certain period, indicating the efficiency of inventory management.

Days' Sales

A financial ratio that measures the average time it takes a company to convert its inventory into sales.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations based on its operating income.

Income Before Tax

A company's earnings before any taxes are applied, reflecting the profitability of the business from its operations.