Which One of the Following Is NOT One of the Three

question 42

Multiple Choice

Which one of the following is NOT one of the three main reasons why it is essential that working papers be thoroughly reviewed by another member of the audit firm at the completion of the audit?

• A) to make sure that the audit meets the firm's standard of performance
• B) to evaluate the performance of inexperienced personnel
• C) to evaluate the accuracy of the auditing firm's time budget for the engagement
• D) to counteract the bias that frequently enters into the auditor's judgement

Grasp the law of demand and its effects on the market.

Understand how markets allocate resources effectively.

Comprehend the interaction between demand and supply curves and their shifts.

Identify the role of substitutes and complementary goods in affecting demand.

---

Definitions:

Direct Write-Off Method

An accounting practice where uncollectible debts are charged against income at the time they are determined to be uncollectable, rather than provisioned for in advance.

Direct Write-Off Method

An accounting practice where specific bad debts are written off against income at the time they are deemed to be uncollectable.

Generally Accepted Accounting Principles

Generally Accepted Accounting Principles (GAAP) are a set of rules, standards, and procedures established for accounting and financial reporting, aimed at ensuring consistency and transparency.

Factoring

A financial transaction in which a business sells its accounts receivable (invoices) to a third party (factor) at a discount, to obtain immediate cash.