An Auditor Who Uses a Transaction Cycle Approach to Assessing

question 24

Multiple Choice

An auditor who uses a transaction cycle approach to assessing control risk most likely would test control activities related to transactions involving the sale of goods to customers with the:

• A)Collection of receivables.
• B)Purchase of merchandise inventory.
• C)Payment of accounts payable.
• D)Sale of long-term debt.

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Definitions:

Daytime Naps

Short periods of sleep taken during the day to refresh or make up for insufficient nighttime sleep.

Bed Time

Bed Time signifies the regular time at which an individual goes to bed to sleep.

Alcohol

A chemical compound commonly found in beverages such as beer, wine, and spirits, characterized by its psychoactive and intoxicating effects.

Reticular Activating System

A network of neurons in the brainstem that regulates wakefulness and sleep-wake transitions.