A Top-Down Approach Begins by _____

question 28

Multiple Choice

A top-down approach begins by _____.

• A)considering what can go wrong in the financial statements
• B)considering which members of top management might be committing fraud
• C)assigning the highest ranking and most experienced members of an audit team to an audit
• D)sending questionnaires to top management to complete before interviewing any mid-level management employees

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Definitions:

Bank Reconciliation

Bank reconciliation is the process of matching the balances in an entity's accounting records to the corresponding information on a bank statement, to ensure accuracy and identify discrepancies.

Journal Entry

A record used in bookkeeping that logs the debits and credits made to different accounts as a result of business transactions.

Recording Error

A mistake made during the process of entering financial transactions into the accounting records.

Bank Service Charge

Fees charged by banks for account maintenance, transactions, and other services provided to customers, often listed in the account statement.