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.

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Definitions:

Endocrine System

A network of glands in the body that produce and secrete hormones directly into the bloodstream to regulate vital processes, including growth, metabolism, and reproduction.

Pituitary Gland

A small, pea-sized gland located at the base of the brain, crucial for controlling growth, metabolism, and the activity of other glands.

Adrenal Gland

An organ located above the kidneys that produces hormones such as adrenaline and cortisol, which regulate stress response.

Thyroid Gland

An endocrine gland in the neck that produces hormones primarily responsible for regulating metabolism and energy use in the body.