Reviewing Internal Audit Report Drafts with Clients Is: 1

question 109

Multiple Choice

Reviewing internal audit report drafts with clients is: 1. Required according to the Standards. 2. A form of courtesy. 3. Ethically mandated. 4. A form of validation.

• A) 1 and 2 only
• B) 2 and 3 only
• C) 2 and 4 only
• D) 3 and 4 only

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Definitions:

Ledger

A book or digital record holding all the accounts of a company, showing the changes made to each account and the current balance.

Journal

A chronological record of all business transactions, used to transfer information to the general ledger.

Prepaid Insurance

Expenses paid in advance for insurance coverages that extend beyond the current accounting period.

Posting References

Codes or numbers used to track the transfer of information from journals to ledgers in the accounting process.