Which of the Following Is NOT a Type of Audit

question 12

Multiple Choice

Which of the following is NOT a type of audit evidence used in assessing internal control?

• A) checking approval of customer sales orders
• B) matching prices on sales invoices against a standard price list
• C) observing staff performing their duties
• D) observing the inventory count

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a certificate or instrument.

Effective Annual Yield

The return on an investment expressed as an annual rate, taking into account the effect of compounding interest.

Selling Today

The act of disposing of an asset or security in the current market with the intention of realizing its current value.

Par-value

The face value of a bond or stock, as stated by the issuing company, which is typically the amount paid out at maturity for bonds.