Performing Numerical Accuracy Tests for Foreign Currency Translation, Payroll Taxes

question 30

Multiple Choice

Performing numerical accuracy tests for foreign currency translation, payroll taxes, interest on loans outstanding, and depreciation calculations ________.

• A)is the role of the internal audit function
• B)is the responsibility of management
• C)is referred to as recalculation
• D)is unnecessary if the client is assessed as having low control risk

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Definitions:

Control

The process of monitoring and regulating operations and activities to ensure they meet certain standards or objectives.

Evaluate

The process of examining something in detail to determine its value or worth, often used in the context of assessing projects or investments.

Direct Materials

Raw materials that can be directly traced to the production of a specific product or service.

Ending Inventory

The financial valuation of items for sale at the conclusion of a financial period, figured by starting with the beginning inventory, adding purchases, and then deducting the cost of goods sold.