Which of the Following Is Not a Common Audit Procedure

question 61

Multiple Choice

Which of the following is not a common audit procedure used to search for contingent liabilities?

• A)Examine letters of credit.
• B)Examine payroll reports.
• C)Review internal revenue agent reports.
• D)Analyze legal expense.

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Definitions:

Financial Prospects

Expectations or outlooks for future financial performance or potential for growth and profitability.

Good Health

A state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity.

Innate Reactions

Natural, instinctual responses present at birth that do not have to be learned, such as reflexes or basic drives.

Cognitive Interpretation

The process by which individuals perceive, comprehend, and interpret information mental.