When the Auditor Uses Tracing as an Audit Procedure for Tests

question 34

Multiple Choice

When the auditor uses tracing as an audit procedure for tests of transactions,she is primarily concerned with which audit objective?

• A)occurrence
• B)completeness
• C)cutoff
• D)classification

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Definitions:

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, based on assigned weights.

Free Cash Flow

A financial metric that represents the amount of cash a company generates after accounting for capital expenditures used to maintain or expand its asset base.

Corporate Governance

The system of rules, practices, and processes by which a company is directed and controlled, focusing on balancing the interests of stakeholders.

CEO's Ability

Refers to the skills, experience, and leadership qualities that a Chief Executive Officer possesses in managing and guiding a company.