Considerations for Determining Required Audit Resources Include

question 427

Multiple Choice

Considerations for determining required audit resources include:

• A) Training needed by the audit staff to meet the audit objectives
• B) Contractual assistance needed to meet the audit objectives
• C) Both A and B
• D) None of these

---

Definitions:

Revenue Recognition

The principle that dictates the specific conditions under which revenue is recognized and recorded in the accounts.

Realization of Revenue

The realization of revenue occurs when a company has earned its revenue—typically through the delivery of goods or services—and it can be recognized on the financial statements.

Financial Statements

Financial statements are records that convey the business activities and the financial performance of a company, typically including the balance sheet, income statement, and cash flow statement.