With Respect to Financing Activities, an Auditor Should Understand _______

question 5

Multiple Choice

With respect to financing activities, an auditor should understand _______.

• A)how a company plans to sell its long-term assets
• B)how a company plans to fund the acquisition of long-term assets
• C)that this area lacks inherent risk, thus can be ignored
• D)that this area is handled by the internal audit function, and thus should defer the audit procedures to them

---

Definitions:

Audience Centred

An approach focusing on understanding and addressing the needs, interests, and expectations of the audience.

Oral Presentation

A verbal delivery of information to an audience, often accompanied by visual aids, to inform, persuade, or entertain.

Eye Contact

The act of looking directly into another person's eyes, which can communicate various messages and emotions in social interactions.

Communication Transparency

The open sharing of honest and complete information about the organization and workplace affairs.