The Overall Objectives of the Audit Test Must Be Stated

question 69

Multiple Choice

The overall objectives of the audit test must be stated in terms of the

• A)anticipated results.
• B)transaction cycle being tested.
• C)risks addressed and the transaction cycle being tested.
• D)risk addressed and the anticipated results.

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Definitions:

Credit Sales

Sales transactions in which the payment is delayed as agreed by both the seller and the buyer.

Cash Collection

The process of gathering all cash payments received from customers, often related to sales or services, improving a company's liquidity.

Budget Slack

The practice of underestimating revenue or overestimating costs while preparing a budget to create a buffer, which can be used to handle unforeseen financial situations.

Planning

The process of setting goals, determining resources needed to achieve those goals, and outlining the steps necessary to accomplish them.