When an Auditor Asks Questions Verbally or in Written Form

question 79

Multiple Choice

When an auditor asks questions verbally or in written form of knowledgeable individuals internal to the client, this is referred to as ________.

• A)confirmation
• B)attestation
• C)affirmation
• D)inquiry

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Definitions:

Revenue Test

An accounting principle used to determine when revenue is recognizable in the financial statements based on specified criteria.

Profit or Loss Test

A criterium used to assess the profitability or loss incurred by a business over a specific period.

Asset Test

A measure used to determine the financial stability or solvency of an individual or entity by comparing their assets against their liabilities.

Production Process

The series of steps or actions taken to transform raw materials into finalized products.