Which of the Following Statements Is True Regarding a Difference

question 69

Multiple Choice

Which of the following statements is true regarding a difference between general audit objectives and specific audit objectives for an account balance?

• A)The general audit objectives are applicable to every account balance on the financial statements.
• B)The specific audit objectives are applicable to every account balance on the financial statements.
• C)For any given account,usually only one audit objective must be met to conclude the transactions are properly accounted.
• D)The general audit objectives are stated in terms tailored to the engagement.

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Definitions:

Bankruptcy

The process by which an insolvent person voluntarily or involuntarily transfers assets to a trustee for distribution to creditors.

Builder's Lien Act

Legislation that gives builders and contractors a right to secure payment for labor and materials through a lien on the property they have worked on.

Attachment

Under the Personal Property Security Act, the situation in which value has been given pursuant to the contract, giving the creditor a claim against the assets used as security if there is a default by the debtor.

Purchase Money Security Interest

A legal claim or lien on collateral provided by a borrower to secure a loan used to purchase the collateral.