Which of the Following Journal Entries Would the Auditor Least

question 441

Multiple Choice

Which of the following journal entries would the auditor least likely examine in an effort to address the risk of management override of controls?

• A) A journal entry made to record recurring periodic accounting estimates.
• B) A journal entry made by an individual who does not typically make journal entries.
• C) A journal entry recorded as a post-closing entry that has no explanation or description.
• D) A journal entry made to a seldom-used account.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase.

Equilibrium Price

The price point in the market where the amount of goods being offered is equal to the amount being sought by consumers.

Monopoly Supply Curve

A theoretical concept indicating that a monopoly does not have a traditional supply curve because its output decision depends on the demand it faces and its cost structure.

Average Variable Costs

The total variable costs of production divided by the quantity of output produced.