Confirmation and Direct Knowledge by the Auditor Are Most Associated

question 30

Multiple Choice

Confirmation and direct knowledge by the auditor are most associated with:

• A)tests of controls.
• B)analytical procedures.
• C)tests of details of balances.
• D)tests of details of transactions.

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Definitions:

Excess Funds

Financial resources that exceed the current needs or obligations of a company or individual, available for investment or other purposes.

Short-Term Financial Plan

A financial strategy or planning document that outlines the revenue, expenses, and cash flow for a business over a short period, typically less than one year.

Letter of Credit

A financial document issued by a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount.

Bank Loan

A bank loan is a sum of money borrowed from a bank that must be repaid with interest over a predetermined period.