The Audit Procedure That Requires the Auditor to Examine Notes,minutes,and

question 72

Multiple Choice

The audit procedure that requires the auditor to examine notes,minutes,and bank confirmations for restrictions is performed to satisfy the audit objective of

• A)existence.
• B)completeness.
• C)accuracy.
• D)presentation and disclosure.

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Definitions:

FIFO Method

"First In, First Out," an inventory valuation approach where goods first produced or purchased are the first to be sold, useful in managing inventory and cost of goods sold.

Equivalent Units

A concept in accounting used to apportion costs to partially completed goods, converting them into the number of finished goods units.

Activity-based Management

A management approach focusing on managing activities as a way to improve customer value and profit by improving the efficiency and effectiveness of those activities.

Waste

Any unusable materials or substances involved in a process which are produced as a by-product and often require disposal.