The Principles Underlying an Audit

question 36

Multiple Choice

The principles underlying an audit

• A) contain the procedures that must be followed during an audit.
• B) carry the same authority as AICPA auditing standards.
• C) only apply to the audits of public companies.
• D) provide structure for the clarified Codification.

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Definitions:

Accounts Payable

Liabilities to creditors arising from purchases of goods, services, or loans, representing amounts a company owes and must pay in the near term.

Buildings

Structures such as offices, warehouses, and factories owned by a company for the purpose of conducting business operations.

Chart Of Accounts

A systematic list of all account titles and numbers used by a business to organize its financial transactions and prepare financial statements.

Alphabetize

The act of arranging words or other textual elements in order according to the sequence of the letters in the alphabet.