In Describing the Cycle Approach to Segmenting an Audit, Which

question 74

Multiple Choice

In describing the cycle approach to segmenting an audit, which of the following statements is not true?

• A) All general ledger accounts and journals are included at least once.
• B) Some journals and general ledger accounts are included in more than one cycle.
• C) The "capital acquisition and repayment" cycle is closely related to the "acquisition of goods and services and payment" cycle.
• D) The "inventory and warehousing" cycle may be audited at any time during the engagement since it is unrelated to the other cycles.

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Definitions:

Depression

An extended period of significant decline in economic activity across the economy, characterized by high unemployment, low output, and deflation.

Technological Development

Technological development involves the process of researching, innovating, and implementing new technologies to improve or create products, services, and processes.

Banks Closed

"Banks Closed" refers to situations when banking institutions are not operating, which could be due to holidays, strikes, financial crises, or regulatory actions.

Travel Time

The duration taken to move from one location to another.