An Example of an Audit Procedure That Relates to the Auditor's

question 13

Multiple Choice

An example of an audit procedure that relates to the auditor's understanding of internal control is to

• A)count petty cash at all locations.
• B)use test data to verify functioning of data entry controls.
• C)observe entity activities and operations.
• D)trace all large fixed-asset purchases to supporting invoices.

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Definitions:

Oceanic Crust

The part of Earth's lithosphere that underlies the ocean basins, composed mostly of basaltic rock and thinner than the continental crust.

Island Arcs

Curved chains of volcanic islands that form along subduction zones at the edges of tectonic plates in the ocean.

Continental Rifts

Areas where the Earth's crust is stretching and splitting apart, leading to the formation of new oceanic crust.

Felsic

Refers to igneous rocks that are rich in silica and light in color, including granite and rhyolite.