One of the Changes in Auditing Procedure Which Was Brought

question 10

Multiple Choice

One of the changes in auditing procedure which was brought about as a result of the 1136 Tenants case was that auditors were encouraged to begin using:

• A)letters of representation.
• B)confirmation letters.
• C)engagement letters.
• D)billet doux letters.

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Definitions:

Replenishes

Refers to the process of filling up or restoring inventory or supplies to their optimal levels.

Optimal

The most favorable condition or level of efficiency that a system, selection, or outcome can achieve under given constraints.

Collection Float

The time interval between when a payment is deposited and when funds become available in the company’s account, affecting cash flow.

Cheques

Written, dated and signed instruments that direct a bank to pay a specific sum of money to the bearer.