In a Test of Controls, Auditors May Trace Receiving Reports

question 18

Multiple Choice

In a test of controls, auditors may trace receiving reports to vouchers recorded in the voucher register. This is a test for

• A)occurrence.
• B)completeness.
• C)classification.
• D)cutoff.

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Definitions:

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased with a given budget at specific prices.

Stock Market Downturn

A period during which stock prices fall across the majority of the market, often reflecting broader economic trends or issues within specific sectors.

Risk/Return

The principle that potential return rises with an increase in risk. Investors must balance the desire for low risk with the need for higher returns.

Marginal Rate of Substitution

The rate at which a consumer is willing to give up one good in exchange for another good while maintaining the same level of satisfaction.