The Purpose of Allocating Planning Materiality to Balance Sheet Accounts

question 8

Multiple Choice

The purpose of allocating planning materiality to balance sheet accounts is to

• A)assess the appropriate evidence to accumulate for each account on the balance sheet.
• B)assess the appropriate evidence to accumulate for each account on both the balance sheet and income statement.
• C)reduce the amount of procedures done in the course of the audit.
• D)increase the possibility that fraud or illegal activities would be detected by audit procedures.

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Definitions:

Computer Databases

Organized collections of data or information that can be electronically stored, accessed, manipulated, and updated.

Medical Records

Documented records of a patient's medical history, treatment records, diagnoses, and other healthcare information.

Intentional Tort

A wrongful act, done on purpose, that causes harm to another person, for which the injured party can seek legal redress.

Trespass

An unlawful act causing injury to the person, property, or rights of another, particularly entering onto land without the owner's permission.