The Audit Working Papers Serve as a Record of the Evidence

question 23

Multiple Choice

The audit working papers serve as a record of the evidence accumulated and the results of the audit tests.This helps to demonstrate that the audit was

• A)kept properly confidential;information was held secure.
• B)completed using Canadian generally accepted accounting principles.
• C)organized effectively with no mistakes in calculations.
• D)conducted in accordance with Canadian generally accepted auditing standards.

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Definitions:

Net Operating Income

The total profit of a business after subtracting operating expenses but before deducting taxes and interest.

Future Costs

Costs that are expected to be incurred in upcoming periods.

Sunk Costs

Expenses that have already been incurred and cannot be recovered.

Alternatives

Different options or choices available in a decision-making scenario.