The Overall Objective in the Audit of the Acquisition and Payment

question 74

Multiple Choice

The overall objective in the audit of the acquisition and payment cycle is

• A) to ensure the reliability of the affected accounts.
• B) to ensure the accuracy of the affected accounts.
• C) to evaluate whether the affected accounts are fairly presented in accordance with accounting standards.
• D) to evaluate whether fraudulent payments were made.

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Definitions:

Inelastic Demand

A situation where the demand for a good or service is relatively unresponsive to changes in price.

Total Revenue

The total income received by a firm from sales of its products or services.

Increase

A rise or growth in quantity, size, number, or some other measure.

Inelastic Demand

A situation where the demand for a good or service is not significantly affected by changes in its price.