An Auditor Would Be LEAST Likely to Use Confirmations in Connection

question 98

Multiple Choice

An auditor would be LEAST likely to use confirmations in connection with the examination of:

• A) shareholders' equity.
• B) property, plant, and equipment.
• C) long-term debt.
• D) inventories.

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Definitions:

Trade Secrets

Confidential business information that gives a company a competitive advantage.

Search Warrant

An order granted by a public authority, such as a judge, that authorizes law enforcement personnel to search particular premises or property.

Data Secret

A type of confidential information, typically business-related, that is not widely known and gives a company a competitive advantage.

Predicting Wrongdoing

The process of using information or trends to forecast unethical or illegal activities.