A Post-Audit Should Be Performed Using

question 34

Multiple Choice

A post-audit should be performed using

• A)a different evaluation technique than that used in making the original decision.
• B)the same evaluation technique used in making the original decision.
• C)estimated amounts instead of actual figures.
• D)an independent advisor.

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Definitions:

Adjustments

Entries made in accounting records to correct errors or allocate revenues and expenses to the appropriate accounting period.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, representing wear and tear, obsolescence, or a decline in value.

Utilities Payable

A liability account recording amounts owed for utilities such as electricity, water, and gas that have been consumed but not yet paid for.

Utilities Expense

Costs associated with the consumption of utilities such as electricity, gas, water, and sewer services by a business or household.