The Audit Program Specifies What the Client Must Do to Perform

question 58

True/False

The audit program specifies what the client must do to perform the audit in accordance with generally accepted accounting procedures.

---

Definitions:

Financing Activities

Activities that result in changes in the size and composition of the equity capital or borrowings of the entity, as reported in the cash flow statement.

Fiscal Year

A twelve-month period used for accounting purposes and financial reporting by an organization, which may not align with the calendar year.

Indirect Method

The indirect method is an approach to calculating cash flows from operating activities by starting with net income and adjusting for non-cash transactions.

Operating Activities

Transactions and other events related to the primary business activities of an entity, such as sales and service provision.