Each Working Paper Should Include Enough Information to Fulfill the Objectives

question 71

Multiple Choice

Each working paper should include enough information to fulfill the objectives for which it was designed.For example,if a working paper is designed to list the detail and show the verification of support of a balance sheet account such as prepaid insurance,it is essential that the detail on the working paper

• A)reconcile the change in costs from last year to this year.
• B)use analytical review to consider the reasonableness of the account.
• C)reconcile with the associated general ledger account.
• D)use observation to identify controls in place over the transactions.

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Definitions:

Incidental Beneficiaries

Individuals or entities who indirectly benefit from a contract despite not being explicitly mentioned as parties to the contract.

Assignee

An individual or entity to whom rights or interests have been transferred by another party.

Assignor

A party who transfers rights or interests in a property, contract or other legal entity to another party, known as the assignee.

Third-Party Beneficiary

An individual or entity who, though not a party to a contract, benefits from the contract's performance by the contracting parties.