Audit Evidence Regarding the Separation of Duties Is Normally Best

question 80

Multiple Choice

Audit evidence regarding the separation of duties is normally best obtained by:

• A)preparing flowcharts of operational processes.
• B)preparing narratives of operational processes.
• C)observation of employees applying control activities.
• D)inquiries of employees applying control activities.

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Definitions:

Population Characteristics

Attributes or features that describe the various aspects of a population.

Transfer Price

The price at which divisions of a company transact with each other, such as the trade of supplies or labor between departments.

Unsatisfied Demand

A situation where the quantity demanded of a product or service exceeds the quantity supplied at a given price.

Selling Division

A specific segment of a company focused on sales activities, including marketing and distributing products to customers.