When Designing Audit Procedures, Tracing of Source Documents to the Customers

question 84

Multiple Choice

When designing audit procedures, tracing of source documents to the customers subsidiary ledger and subsequently to the general ledger is done to satisfy what assertion?

• A)Valuation
• B)Cutoff
• C)Completeness
• D)Classification

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Definitions:

Effect Size

A statistical measure that indicates the strength of the difference or relationship between two variables in a numerical scale.

External Financing

Funds that a company secures from outside sources, such as loans, lines of credit, or the sale of equity, to support its operations and growth.

Financing Need

Refers to the amount of funding required by an entity to carry out its operations, investments, or to cover its expenses.

Equity

The ownership interest in a company, represented by the shares held by investors.