Which of the Following Will an Auditor Not Perform When

question 101

Multiple Choice

Which of the following will an auditor not perform when looking for additions to debt?

• A)Trace the proceeds into the cash receipts records.
• B)Examine canceled notes.
• C)Obtain assurance regarding board approval of the debt through review of board meeting minutes.
• D)Trace the proceeds into the bank statement.

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Definitions:

Goods Value

Goods value represents the importance, worth, or usefulness of a product or service to buyers, often determined by its price, quality, and utility.

Market Supply

The total quantity of a good or service that all producers are willing and able to sell at various prices in a given market.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single participant has the power to significantly influence prices.

Market Prices

The current prices at which goods and services can be bought or sold in a marketplace, determined by supply and demand forces.