In Assessing Control Risk, an Auditor Ordinarily Selects from a Variety

question 442

Multiple Choice

In assessing control risk, an auditor ordinarily selects from a variety of techniques, including:

• A) Inquiry and analytical procedures.
• B) Reperformance and observation.
• C) Comparison and confirmation.
• D) Inspection and verification.

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Definitions:

Operating Expenses

Costs incurred in the regular functioning of a business, excluding direct production costs; these may include rent, utilities, and administrative salaries.

Sales Revenues

Income earned by a company from its sales of goods or services, before any deductions.

Annual Depreciation

The annual expense taken for a fixed asset, representing a fraction of its cost spread over its lifespan.

Useful Life

The estimated duration of time that an asset is expected to be usable for its intended purpose, affecting depreciation calculations.