What Is the Second Phase of the Audit

question 144

Multiple Choice

What is the second phase of the audit?

• A)The risk response phase
• B)The reporting phase
• C)The audit strategy phase
• D)The risk assessment phase

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Definitions:

Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity used to finance a company's assets.

Total Asset Turnover

A financial metric that measures a company's efficiency in using its assets to generate revenue.

Stretching Payables

Extending the period to pay bills as long as possible without incurring penalties, to improve short-term liquidity.

Current Liabilities

Current liabilities are a company's debts or obligations that are due to be paid to creditors within one year.