When the Auditor Attempts to Understand the Operation of the Accounting

question 87

Multiple Choice

When the auditor attempts to understand the operation of the accounting system by tracing a few transactions through the accounting system, the auditor is said to be

• A) tracing.
• B) vouching.
• C) performing a walkthrough.
• D) testing controls.

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Definitions:

Anesthetized

A condition of being under the effect of anesthesia, typically involving loss of sensation or consciousness to prevent pain during surgeries.

Unconscious State

An unconscious state refers to a condition where an individual is not awake and aware of their environment, often due to a health-related condition.

Stage 1 Sleep

A light sleep phase in the sleep cycle characterized by slow eye movements and reduced muscle activity; it is the transition phase from wakefulness to sleep.

Jerking Upward

A sudden, quick movement upward, often reflexive or involuntary.