The Auditor of ABC Ltd

question 34

Multiple Choice

The auditor of ABC Ltd.has concluded that there are significant risks of misstatement of revenue at the company with potential overstatement of revenue.Which of the following audit tests should the auditor conduct to address this significant risk?

• A)control tests of authorization to ensure that credit limits for sales are all approved by the sales manager
• B)analytical review of sales comparing sales trends over the last five years by division and to the industry
• C)examination of sales after the year end to quantify potential cutoff errors (income from the subsequent period included in the current year)
• D)risk assessment procedures looking carefully at inherent risks associated with the handling of cash in the sales cycle

Understand the purposes and functionalities of various wireless technologies and protocols.

Gain knowledge on mobile device operations including operating systems and connectivity options.

Identify tools and methods for enhancing mobile device utility and troubleshooting.

Grasp the significance of security features and practices in mobile computing.

---

Definitions:

Marginal Rate

The increase or decrease in a unit of an outcome resulting from a one unit change in another variable.

Substitution

The economic principle whereby consumers replace more expensive items with less costly alternatives, or firms use different inputs in their production process.

Mangoes

A tropical stone fruit with a sweet yellowish or orangish flesh, known for its nutritional value and distinct flavor.

Indifference Curve

A graph that represents combinations of goods among which a consumer is indifferent, showing the same level of satisfaction to the consumer.