If the Auditor Is Auditing Revenues and Identifies Gaps in the Sequence

question 5

Multiple Choice

If the auditor is auditing revenues and identifies gaps in the sequence of pre-numbered sales invoices, _______.

• A)the auditor is unlikely facing a completeness problem, even if the file reconciles with the general ledger
• B)the auditor may be facing a completeness problem, even if the file reconciles with the general ledger
• C)the auditor may be facing a valuation problem, even if the file reconciles with the general ledger
• D)the auditor is unlikely facing a valuation problem, even if the file reconciles with the general ledger

---

Definitions:

Slip Rings

Stationary devices used to conduct current to an alternator rotor.

Stator Windings

The wire coils located in the stator of an electric motor or generator that create a magnetic field when current flows through them.

Field Windings

Field Windings are coils of wire within electrical generators or motors that create a magnetic field when current is passed through them, essential for the induction of voltage in generators or the creation of torque in motors.

Rectifier

A device that transforms alternating current (AC) into direct current (DC), commonly utilized in systems supplying power.