Performance Is One of the Principles Underlying an Audit

question 24

Essay

Performance is one of the principles underlying an audit. List three performance responsibilities.

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Definitions:

Leasing Cash Flows

The cash inflows and outflows associated with leasing operations, including initial receipts, ongoing lease payments, and final residuals.

Operating Leases

Lease agreements for the use of equipment or property for a shorter period compared to the asset's useful life, where lessor retains ownership.

Financial Leases

Typically, a longer-term, fully amortized lease under which the lessee is responsible for upkeep. Usually not cancellable without penalty.