The Audit Procedure That Requires the Auditor to Examine Notes,minutes,and

question 72

Multiple Choice

The audit procedure that requires the auditor to examine notes,minutes,and bank confirmations for restrictions is performed to satisfy the audit objective of

• A)existence.
• B)completeness.
• C)accuracy.
• D)presentation and disclosure.

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Definitions:

Direct Method

In accounting, a cash flow statement preparation approach that lists specific cash inflow and outflow categories directly.

Operating Activities

Business activities directly related to the production, sale, and delivery of a company's products and services, generating revenue and expenses.

Accounts Receivable

Receivables due from clients to a business for products delivered or services performed but not yet compensated.

Income Tax Payable

Represents the amount of income tax owed to the government that has not yet been paid.