When Testing the Controls for the Completeness Transaction-Related Audit Objectives

question 39

Multiple Choice

When testing the controls for the completeness transaction-related audit objectives,

• A) failure to record the acquisition of goods or services will generally understate net income.
• B) failure to record the acquisition of goods or services has no impact on the balance sheet.
• C) it is generally easy for the auditor to determine whether unrecorded transactions exist.
• D) the audit time for accounts payable can be reduced if the client has effective internal controls and the auditor properly tests those controls.

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Definitions:

Transportation

The action of transporting someone or something or the process of being transported.

Involuntarily Committed

The legal process through which individuals are placed into a psychiatric treatment facility without their consent, often due to their inability to make safe or reasonable decisions about their own care or because they pose a danger to themselves or others.

Right to Treatment

A legal and ethical principle asserting that individuals should have access to appropriate and necessary medical care.

Adequate Treatment

Medical or therapeutic interventions that satisfactorily meet the necessary standard of care for a condition.