Which of the Following Is an Example of Poorly-Developed Audit

question 91

Multiple Choice

Which of the following is an example of poorly-developed audit documentation?

• A) Clear communication as to how testing was performed, the results and conclusions.
• B) Organization and assembly of documentation in an orderly fashion.
• C) Headings that include the name and signature of the client representative that the auditor interacted with while performing testing.
• D) Authenticated identification of the person responsible for completing the procedure and conclusions.

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Definitions:

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively management is using a company’s assets to create profits.

Total Debt Ratio

A financial metric that compares the total amount of a company's debt to its total assets, indicating the extent to which a company's operations are financed by debt.

Net Working Capital Turnover

A measure of how effectively a company is using its net working capital to generate sales.

Total Fixed Assets

The cumulative value of all long-term tangible assets that a company owns and uses in its operations, and are not intended for resale within the business year.