In Testing the Completeness Assertion for a Liability Account, an Auditor

question 6

Multiple Choice

In testing the completeness assertion for a liability account, an auditor ordinarily works from the:

• A)financial statements to the potentially unrecorded items.
• B)potentially unrecorded items to the financial statements.
• C)accounting records to the supporting evidence.
• D)trial balance to the subsidiary ledger.

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Definitions:

Speed of Light

The speed at which light travels in a vacuum, approximately 299,792 kilometers per second.

Electric Motor

A device that converts electrical energy into mechanical energy, typically through the interaction of magnetic fields and current-carrying conductors.

Voltage Flows

Incorrect terminology; voltage does not flow, but rather it is a measure of the electrical potential difference between two points.

Neutral Conductor

A conductor that is connected to a point of zero voltage in an electrical system, providing a return path for current in circuits where a neutral point is used.