To Test for the Completeness Balance-Related Audit Objective,the Auditor Should

question 33

True/False

To test for the completeness balance-related audit objective,the auditor should review the accounts receivable trail balance for large or unusual items.

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Definitions:

Initial Value Method

An accounting approach where an investment is recorded initially at cost, without adjusting for changes in market value over time.

Investment Account

A financial account that holds securities, stocks, bonds, and other investments for the benefit of an investor.

Subsidiary

A company that is completely or majority-owned by another company, referred to as the parent company.

GAAP

Generally Accepted Accounting Principles, a set of rules and standards designed to ensure consistency, transparency, and integrity in the financial reporting of companies in the United States.