When Preparing and Organizing Audit Files

question 122

Multiple Choice

When preparing and organizing audit files,

• A)the rules established by the SEC and PCAOB must be followed.
• B)a lead schedule contains the detailed accounts from the general ledger making up the line item on the trial balance.
• C)a working trial balance is considered part of the permanent file.
• D)the audit program is not part of the audit files.

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Definitions:

Ethical Climate

The moral atmosphere of an organization, shaped by its policies, practices, and ethical behaviors of its members.

Moral Standards

Principles that govern behaviors in terms of what is considered right and wrong, varying across cultures and individuals.

Enforced

Implemented or applied forcefully or compulsorily, often referring to rules, policies, or laws.

Quality-Of-Life Management

The practice of enhancing employees' job satisfaction, well-being, and overall quality of life through organizational policies, work environment improvements, and wellness programs.