Which of the Following Best Describes Continuous Auditing

question 34

Multiple Choice

Which of the following best describes continuous auditing?

• A)Audit-related activities are peformed throughout the period under review.
• B)The full audit team remains on the client site for the entire fiscal year.
• C)The database extracts every 10^th transaction and flags it for audit review.
• D)Auditors can generate greater fees by increasing the amount of manual testing performed for the client.

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Definitions:

Stock Issuance Costs

Expenses incurred by a company while issuing new shares of stock, including legal, accounting, and underwriting fees.

New Shares

Additional shares issued by a company, either through public offering, private placement, or stock splits, increasing the total number of outstanding shares.

Fair Value Allocation

The process of assigning a fair market value to all assets and liabilities of a company, often conducted during the acquisition process.

Par Value

Par value is the nominal or face value of a bond, stock, or other financial instrument, as stated by the issuer.