Which One of the Following Types of Evidence Would NOT

question 45

Multiple Choice

Which one of the following types of evidence would NOT be obtained in tests of controls?

• A) re-performance
• B) inquiry of the client
• C) documentation
• D) physical examination

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Definitions:

Realized Gains

Profits that result from selling an asset at a higher price than its cost.

Other Comprehensive Income

Earnings that are not part of net income, consisting of items such as unrealized gains and losses on certain investments.

Retained Earnings

The portion of net income that is retained by the corporation instead of being paid out as dividends to shareholders.

Earnings Management

The practice of using accounting techniques to produce financial reports that may paint an overly positive picture of a company's business activities and financial position.