An Auditor Is Likely to Use Four Types of Procedures

question 67

Multiple Choice

An auditor is likely to use four types of procedures to support the operating effectiveness of internal controls.Which of the following would generally not be used?

• A)Make inquiries of appropriate client personnel
• B)Examine documents, records, and reports
• C)Reperform client procedures
• D)Inspect design documents

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Definitions:

Debt Ratio

A financial ratio that measures the extent of a company's leverage, calculated by dividing total liabilities by total assets.

Total Assets

The sum of all assets owned by a company, including cash, investments, and physical property.

Owners' Equity

Represents the residual interest in the assets of an entity after deducting liabilities, essentially the net worth belonging to owners.

Financial Blueprint

A detailed plan outlining an entity's financial strategy, including income, expenditures, investments, and savings goals.