Narratives, Flowcharts, and Internal Control Questionnaires Are Three Commonly Used

question 37

Multiple Choice

Narratives, flowcharts, and internal control questionnaires are three commonly used methods of

• A) documenting the auditor's understanding of internal controls.
• B) testing internal controls.
• C) designing the audit manual and procedures.
• D) documenting the auditor's understanding of client's organizational structure.

Identify how noncash transactions are reported in financial statements.

Apply the indirect method to prepare the operating activities section of the statement of cash flows.

Apply knowledge of accounting principles to calculate cash payments and cash receipts from operating activities using the direct method.

Analyze the impact of changes in current asset and liability accounts on cash flows.