An Example of an External Document That Provides Reliable Information

question 68

Multiple Choice

An example of an external document that provides reliable information for the auditor is: a(n)

• A)employees' time report.
• B)bank statement.
• C)purchase order for company purchases.
• D)carbon copies of a check.

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Definitions:

Conduct Business

The manner in which a company operates within its chosen marketplace, including its strategies, practices, and procedures.

EOQ

Economic Order Quantity, a formula that determines the ideal order quantity that minimizes total inventory holding costs and ordering costs.

Fixed Ordering Costs

Fixed ordering costs are the expenses that do not change with the quantity of order and typically include things like delivery charges and order processing fees.

Inventory Value

The total cost or market value of all the goods and materials held by a company.