An Internal Auditor Is Using a Spreadsheet Application to Review

question 254

Multiple Choice

An internal auditor is using a spreadsheet application to review a cash flow forecast prepared by management. Which of the following correctly identifies the type of evidence this information represents?

• A) Competent, corroborative evidence of future working capital requirements.
• B) Sufficient, analytical evidence of the cash flow position at a given point of time in the future.
• C) Competent, documentary evidence of future cash flow changes within the organization.
• D) Sufficient, circumstantial evidence of the future solvency of the organization.

---

Definitions:

Marriage

A formally recognized bond between two spouses, establishing contractual rights and obligations between them.

Endogamy

A social norm that requires individuals to marry within a specific social group, class, or ethnicity to maintain cultural homogeneity.

Propinquity

The physical or psychological proximity between people, often leading to friendship or other relationships due to the increased likelihood of interaction.

Homogamy

The tendency to choose romantic partners who are similar to us in terms of class, race, education, religion, and other social group membership.