When the Auditor Attempts to Determine the Operation of the Accounting

question 18

Multiple Choice

When the auditor attempts to determine the operation of the accounting system by tracing one or a few transactions through the accounting system,this is referred to as

• A)tracing.
• B)vouching.
• C)tests of controls.
• D)a walk-through.

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Definitions:

Joint-Stock Companies

These are businesses owned by shareholders who invest money in the company in exchange for a share of the profits and losses.

Overseas Trading

The act of buying and selling goods and services across international borders, allowing countries to expand markets and gain access to foreign products.

English Privateers

Privately owned ships sanctioned by the English government during the 16th to 18th centuries to conduct raids on enemy shipping and settlements.

Imported Goods

Products or commodities that are brought into one country from another for the purpose of sale or trade.