To Gather Evidence About Transactions with Related Parties an Auditor

question 65

Multiple Choice

To gather evidence about transactions with related parties an auditor would most likely:

• A)Send account confirmations.
• B)Perform analysis of receivables turnover.
• C)Scan the receivables sub ledger for credit balances.
• D)Scan the aged trial balance for names of officers and directors.

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Definitions:

Hedonism

A philosophical belief that pleasure or happiness is the highest good and primary motivation of human action.

Homeostasis

The self-regulating process by which biological systems tend to maintain stability while adjusting to conditions that are optimal for survival.

Drive

An internal psychological state that motivates an organism to satisfy a need or achieve a goal.

Feedback

Information provided about the result of a process or activity, used as a basis for improvement.