When Testing the Controls for the Completeness Transaction-Related Audit Objectives

question 39

Multiple Choice

When testing the controls for the completeness transaction-related audit objectives,

• A) failure to record the acquisition of goods or services will generally understate net income.
• B) failure to record the acquisition of goods or services has no impact on the balance sheet.
• C) it is generally easy for the auditor to determine whether unrecorded transactions exist.
• D) the audit time for accounts payable can be reduced if the client has effective internal controls and the auditor properly tests those controls.

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Definitions:

Negative Communication

Interactions that convey criticism, contempt, defensiveness, or stonewalling, often leading to relationship deterioration.

Generalize

To make broad statements or conclusions that extend beyond the original data or observations, applying them to larger groups or situations.

Carrying The Bride

is a traditional act involving a groom physically lifting and carrying his bride, often across the threshold of their new home, symbolizing the start of their new life together.

Threshold

The level or point at which something starts or changes, often used metaphorically for the starting point of an action or experience.