The Report of a Service Auditor May Provide Assurance on Whether

question 44

Multiple Choice

The report of a service auditor may provide assurance on whether:
$\begin{array} { c c c } & \text { Controls are implemented} & \text { Operating effectiveness of } \\& &\text { controls}\\\end{array}$
A- $\begin{array} { c c c } \quad\quad\quad\quad\quad\quad\text { Yes } &\quad\quad\quad\quad \quad\quad\quad\text { Yes } \\\end{array}$
B- $\begin{array} { c c c }\quad\quad\quad\quad\quad\quad \text { Yes } &\quad\quad\quad\quad\quad\quad\quad \text { No } \\\end{array}$
C- $\begin{array} { c c c } \quad\quad\quad\quad\quad\quad\text {No} & \quad\quad\quad\quad\quad\quad\quad\text { Yes } \\\end{array}$
D- $\begin{array} { c c c }\quad\quad\quad\quad\quad\quad \text { No } &\quad\quad\quad\quad \quad\quad\quad\text { No }\end{array}$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Accrual Basis

An accounting method where transactions are recorded when they are earned or incurred, regardless of when cash is exchanged.

Matching Concept

An accounting principle that requires the expenses to be matched with the revenues they helped to generate in the same accounting period.

Cash Is Received

The acquisition of monetary funds through various means, such as sales, financing, or donations.

Accrued

Refers to amounts that are recognized in the financial statements before the cash transactions occur, representing liabilities for goods and services received but not yet paid.