What Are the Most Common Forms of Documentation for Client

question 77

Multiple Choice

What are the most common forms of documentation for client internal controls, particularly in smaller environments where accounting and internal control activities are simple?

• A)Narratives
• B)Logic diagrams
• C)Flow charts
• D)Preformatted questionnaires

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Definitions:

After-Tax Discount Rate

The interest rate used in discounted cash flow analysis that accounts for the impact of taxes on the rate of return.

Income Tax Rate

The share of an individual's earnings that is paid to the government as a tax.

Straight-Line Depreciation

Straight-line depreciation is a method of calculating the depreciation expense of an asset evenly over its useful life.

Straight-Line Depreciation

A technique for determining an asset's depreciation, presuming that the asset will depreciate by a consistent value annually throughout its projected useful life.