A Significant Part of the Total Audit That Relates to Cash

question 56

Multiple Choice

A significant part of the total audit that relates to cash is the audit of

• A)physical inventory on hand using an inventory count.
• B)assessment of the accounting policies in use.
• C)substantive testing of the ending accounts payable balance.
• D)sales and collections,payables payments,and payroll payments.

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Definitions:

Comparative Inference

A method of reasoning and drawing conclusions based on the comparison between different cases, data sets, or scenarios.

Familiarity

Close acquaintance with or knowledge of something.

Familiarity Criterion

A standard whereby something is judged or evaluated based on how well known or recognized it is.

Comparative Reasoning

A method of thinking or analysis that involves comparing different entities, ideas, or scenarios to understand their similarities, differences, and implications.