An Auditor Who Uses a Transaction Cycle Approach to Assessing

question 24

Multiple Choice

An auditor who uses a transaction cycle approach to assessing control risk most likely would test control activities related to transactions involving the sale of goods to customers with the:

• A)Collection of receivables.
• B)Purchase of merchandise inventory.
• C)Payment of accounts payable.
• D)Sale of long-term debt.

---

Definitions:

Dual Concerns

When negotiating parties have two primary interests or issues at the core of their negotiation, necessitating attention to both.

Value Claiming

The act of asserting one's entitlement to certain benefits or resources in a negotiation.

Value Creating

The process of enhancing or increasing the worth of a product, service, or business.

Strategic Approaches

Methods or plans of action designed to achieve a long-term or overall aim in various contexts including business, negotiation, or conflict resolution.