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If Controls Over Production Accounting Are Found to Be Strong

question 10

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If controls over production accounting are found to be strong, an auditor can plan to do less testing at year over:


Definitions:

Financial Statements

Reports that summarize the financial performance and position of a company, including balance sheet, income statement, and cash flow statement.

Deferred Revenue

Money received for goods or services which have not yet been delivered or performed; recognized as a liability until the revenue earning criteria are met.

Earned

Income or revenue that has been realized or generated, typically through the sale of goods or services.

Collected

The process of receiving or bringing in payments or money owed to an individual or business.

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