One Reason Why the Independent Auditors Perform Analytical Procedures on the Client's

question 75

Multiple Choice

One reason why the independent auditors perform analytical procedures on the client's operations is to identify:

• A)Weaknesses of a material nature in internal control.
• B)Noncompliance with prescribed control procedures.
• C)Improper separation of accounting and other financial duties.
• D)Unusual transactions.

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Definitions:

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, aimed at standardizing practices across states.

Assignment of Accounts Receivable

The transfer of the right to collect money owed on outstanding invoices from the original creditor to another party.

Security Interest

A lien given by a debtor to his creditor to secure payment or performance of a debt or obligation.

Sale of Goods

A transaction involving the transfer of ownership of goods from the seller to the buyer for a price.