Auditors Can Use Flowcharts in Their Work in Order to

question 29

Multiple Choice

Auditors can use flowcharts in their work in order to

• A) analyze the causal factors of process dispersion
• B) understand the overall process or system being audited
• C) distinguish variations in a process over time
• D) determine process capability and uniformity

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Definitions:

Shares

Units of ownership interest in a corporation or financial asset, giving holders a proportion of the company's profits and a vote in company matters.

Limited Liability

A legal structure that restricts the financial responsibility of an entity's owners to their investment, protecting personal assets from business debts.

Investment

The allocation of resources, usually money, in the expectation of generating an income or profit.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts. The process begins with a petition filed by the debtor, or on behalf of creditors.