The Auditor Normally Considers Both Underlying Accounting Data and Corroborating

question 58

Multiple Choice

The auditor normally considers both underlying accounting data and corroborating information in the audit process. Underlying accounting data does not include which of the following items?

• A) Evidence of controls.
• B) Minutes of meetings.
• C) Checks, invoices, and contracts.
• D) General and subsidiary ledger.

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Definitions:

Credit Sales

Sales made on credit, where the payment is received after the delivery of goods or services.

Operating Activities

Business activities related directly to the production and delivery of goods and services, which are reflected in a company's income and cash flow from operations.

Financing Activities

Transactions related to raising capital and repaying investors, including issuing equity, obtaining loans, and repaying debt, as part of a company's cash flow statement.

Organizing Activities

Activities aimed at arranging or structuring resources and operations, often within the context of management and business operations.