Which of the Following Best Describes Assurance Services

question 84

Multiple Choice

Which of the following best describes assurance services?

• A)Auditors are desperate to offer assurance services so that they will still have business in the future
• B)Assurance and auditing are closely related
• C)Assurance is a guarantee that there is no fraud in a company
• D)Assurance services usually require expertise in information technology

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Definitions:

Reporting

The process of preparing and conveying financial and operational information to relevant stakeholders to facilitate decision-making.

Subsidiary Ledger

A group of accounts that provide detail for accounts in the general ledger that summarize large numbers of transactions.

General Ledger Account

An individual account within the general ledger that records transactions related to a specific asset, liability, equity, revenue, or expense.

Accounts Payable

Short-term financial obligations or debts a company owes to its suppliers or creditors for goods and services received.