Which of the Following Is an Advantage of an Interim

question 429

Multiple Choice

Which of the following is an advantage of an interim report?

• A) An interim report provides timely feedback to the audit engagement client. II. An interim report provides a mechanism for communicating information on red flags promptly while they are being investigated. III. An interim report provides an opportunity for auditor follow-up of findings before the engagement is completed. IV. An interim report increases the probability that corrective action will be initiated more quickly.
• B) I and IV only
• C) II and III only
• D) I, III, and IV only
• E) I, II, III, and IV.

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Definitions:

Snowmelt

The process where accumulated snow and ice melt, often contributing to spring floods and replenishing rivers and aquifers.

Storm Runoff

This is the precipitation that flows over land surfaces and eventually enters water bodies, often carrying pollutants.

Freshwater

Water that has a low salt content, found in rivers, lakes, streams, and underground, essential for drinking, agriculture, and industry.

Saltwater

Water containing a significant concentration of salts, typically found in oceans and seas, as opposed to freshwater in lakes and rivers.