The Audit Procedure That Requires the Auditor to Record the Last

question 65

Multiple Choice

The audit procedure that requires the auditor to record the last cheque number used on the last day of the year and subsequently trace to the outstanding cheques and the cash disbursements journal is performed to satisfy the audit objective of

• A)detail tie-in.
• B)existence.
• C)completeness.
• D)allocation.

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Definitions:

Management

The process of dealing with or controlling things or people, often within the context of business operations like organizing, planning, and overseeing.

Net Income

The net income of a company, calculated by subtracting all costs and taxes from its total revenue.

Writing Off

The accounting action of declaring an asset to be of no value and clearing it off the books, often due to irrecoverability or obsolescence.

Bad Debts

Amounts owed to a company that are not expected to be paid, often resulting from credit sales to customers who are unable to fulfill their financial obligations.