Which of the Following Is Ordinarily Considered an "Extended Procedure

question 13

Multiple Choice

Which of the following is ordinarily considered an "extended procedure" during the independent audit of financial statements?

• A)Send positive confirmations on recorded customer accounts receivable balances.
• B)Perform physical observation and test count during the client's inventory taking.
• C)Measure the time lag between the date of recording cash receipts in the books to the date of deposit credit in the bank.
• D)Conduct interviews with the client's sales billing personnel to learn about sales recording control activities.

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Definitions:

Sole Proprietorship

An unincorporated business firm owned by one person.

Liability

Liability refers to legal financial debts or obligations that arise during the course of business operations, which an entity is responsible for settling.

Capital

Wealth in the form of money or other assets owned by a person or organization or available for a purpose such as starting a company or investing.

Investment

Assigning monetary resources with the goal of achieving income or gains.