The Test of Balances Procedure That Requires the Auditor to Trace

question 28

Multiple Choice

The test of balances procedure that requires the auditor to trace the unadjusted book balance on the reconciliation to the general ledger is an attempt to satisfy the audit objective of

• A) detail tie-in.
• B) existence.
• C) completeness.
• D) accuracy.

Analyze how different transactions impact Assets, Liabilities, and Owner's Equity.

Calculate net income or net loss based on revenues and expenses.

Understand the relationship between withdrawals, investments, and owner's equity.

Recognize the impact of revenue and expenses on the financial position of a business.

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Definitions:

Hard Drive

A data storage device that uses magnetic storage to store and retrieve digital information using one or more rigid rapidly rotating disks (platters) coated with magnetic material.

Time-of-Day Restrictions

Regulations or settings that limit or allow certain actions or activities based on the time of day, commonly used in access control systems and software applications.

Password Expiration

A security measure where a password must be changed after a set duration to reduce risk of long-term vulnerabilities.

Lockout Threshold

A security feature that specifies the maximum number of failed login attempts before a user account is locked to prevent unauthorized access.