At the End of the Audit, Which of the Following

question 26

Multiple Choice

At the end of the audit, which of the following is NOT reevaluated by the auditors?

• A)Misstatements found during the audit
• B)Materiality decisions made during the audit
• C)Inherent risk based on audit findings
• D)Fraud risk based on audit findings

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Definitions:

Accrual

Accrual is an accounting method that records revenues and expenses when they are earned or incurred, regardless of when the cash transaction actually takes place.

Adjusting Journal Entry

An accounting entry made in the general ledger at the end of an accounting period to record any unrecognized income or expenses for the period.

Accrual

The recognition of revenue or expenses that have been earned or incurred but not yet recorded or paid, following the accrual basis of accounting.