The Subject of the Auditing Procedure 'Observation' Is Least Likely

question 17

Multiple Choice

The subject of the auditing procedure 'observation' is least likely to be:

• A) physical assets.
• B) procedures.
• C) processes.
• D) inventory taking.

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Definitions:

Journalizing

The process of recording a transaction in the journal.

Adjustments and Closing Entries

The journal entries made at the end of an accounting period to allocate income and expenditures to the appropriate periods.

Ledger

A book or database in which financial transactions are recorded, organized by account.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, thereby resetting the temporary accounts for the next period.