The Purpose of an Audit Strategy Is

question 43

Multiple Choice

The purpose of an audit strategy is:

• A)to provide a defense against litigation.
• B)to gain an understanding of the client.
• C)to comply with securities law.
• D)to set the scope, timing, and direction for auditing each relevant assertion.

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Definitions:

Current Liability

A company's debts or obligations that are due to be paid to creditors within one year.

Coming Year

The subsequent year or the next twelve months.

Asset's Life

The asset's life, or useful life, is the estimated period that an asset is expected to be usable for the purpose it was acquired, impacting its depreciation calculation.