Which Type of Audit Procedure Would Normally Be Sufficient for Purposes

question 30

Multiple Choice

Which type of audit procedure would normally be sufficient for purposes of auditing prepaid expenses and deferred charges?

• A) tests of controls
• B) tests of transactions
• C) tests of details of balances
• D) substantive analytical procedures

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Definitions:

Management

Management involves the activities associated with running a company, such as controlling, leading, monitoring, organizing, and planning, to achieve business goals.

Account Receivable

Outstanding payments from customers to a company for delivered products or completed services.

Future Money

The concept of valuing funds scheduled to be received or paid out in the future, adjusted for time, inflation, or other financial factors.

Business Activity

Any action undertaken by individuals or companies, such as buying, selling, marketing, or production, aimed at generating income.