If the Auditor Wants to Test Using the _______ Technique

question 52

Short Answer

If the auditor wants to test using the _______ technique, he must find evidence that the control was performed on a timely basis.

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Definitions:

Depreciation Expense

An accounting method used to allocate the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

Temporal Method

A method of currency translation that uses exchange rates based on the time assets and liabilities were acquired or incurred.

Funds-Flow Statement

A financial statement that shows the inflows and outflows of funds from operations, financing, and investing activities, illuminating how a company's financial position changes over time.

Exchange Gains/Losses

The profit or loss resulting from foreign currency transactions due to changes in exchange rates.