Internal Evidence

question 45

Multiple Choice

Internal evidence

• A)is obtained directly from third parties independent of the client.
• B)originates outside of the client's system but has been received and processed by the client.
• C)consists of documents that are produced, used, and stored within the client's information system.
• D)consists of representations made by the client's officers, directors, owners, and employees.

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Definitions:

Balance Sheet

A report detailing a corporation's assets, liabilities, and shareholders' equity at a certain moment.

Bank Reconciliation

The process of comparing and matching figures from the accounting records against those shown on a bank statement to ensure accuracy.

Debit Memo

A document issued by a buyer to a seller indicating a reduction in the amount that the buyer owes to the seller, typically due to returned goods or a clerical error.

Promissory Note

An economic device featuring a documented pledge from one side to transfer a predetermined amount of funds to the other, upon request or at a certain future time.