Inquiry Is a Valuable Technique During the Planning Phase of the Audit

question 26

Multiple Choice

Inquiry is a valuable technique during the planning phase of the audit because it

• A)involves the rechecking of controls to ensure that they are conducted accurately.
• B)is a type of audit evidence that provides a very high level of assurance.
• C)is conclusive evidence from an independent source.
• D)helps obtain information about how procedures and internal controls operate.

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Definitions:

Voltage Regulator

A device that controls the amount of current that is supplied to the field winding in an AC generator.

Current

The flow of electric charge through a conductor, measured in amperes, which is a fundamental concept in electricity and electronics.

Starter Control Circuit

An electrical circuit that manages the operation of a vehicle's starter motor, enabling the engine to start.

Stator Winding

The stationary coil windings located in an alternator or electric generator, which generate magnetic fields when electric current flows through them.