Once the Auditor Is Satisfied with the Transaction-Related Controls in the Revenue

question 36

True/False

Once the auditor is satisfied with the transaction-related controls in the revenue and accounts receivable area, it is not important for the auditor to gain an understanding of the controls that exist over the ending account balances and the related disclosures made in the financial statements.

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Definitions:

Patient-visits

A metric used in healthcare management to denote the number of times patients visit or are seen by healthcare providers.

Activity Variances

The differences between the expected costs based on the predetermined overhead rate and the actual costs incurred.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income.

Activity Variances

Differences that arise between planned or expected costs and actual costs based on changes in activity levels in cost accounting.