During Final Review of Working Papers and Financial Statements,possible Oversights

question 12

Multiple Choice

During final review of working papers and financial statements,possible oversights in the audit can be identified by

• A)the partner's knowledge of the client's business combined with effective analytical procedures.
• B)conducting a closing interview with management of the client.
• C)conducting a meeting with the audit team.
• D)reviewing the minutes from the board meetings.

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Definitions:

Ambiguous

Open to more than one interpretation; not having one obvious meaning.

Indorsement

The act of signing one's name on the back of a check or other negotiable instrument for the purpose of transferring ownership or authorizing its use by someone else.

Payable to Order

A financial term indicating that a payment should be made to a specific individual or entity whose name appears on the document.

Drawer

In banking and finance, the person who writes or issues a check or draft, instructing the bank to pay a specified amount to the person or entity named.