With Which Standard, the Auditor's Substantive Procedures Must Include Reconciling

question 115

Multiple Choice

With which standard, the auditor's substantive procedures must include reconciling the financial statements to the accounting records and should include examining material adjustments made during the course of preparing the financial statements.

• A) Integrated Audit Financial Statement
• B) Public Company Accounting Oversight Board
• C) Audit of Financial Reporting over Internal Control
• D) National Association of Insurance Commission

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Definitions:

Retained Earnings

The portion of a company's profit that is held back and not distributed to shareholders as dividends, often reinvested in the business.

Cash Available

The amount of liquid assets that are readily available for use by a company or individual.

Retained Earnings

Retained Earnings refer to the portion of net income that a company keeps after paying out dividends to its shareholders, which is then reinvested in the business or used to pay off debt.

Prior Period

A term referring to the financial events or conditions from a previous accounting period.