Which of the Following Is Not Included in Phase I

question 61

Multiple Choice

Which of the following is not included in Phase I of the auditing of year-end general cash balances?

• A) Identify client business risks affecting cash.
• B) Design and perform tests of controls and substantive tests of transactions.
• C) Set performance materiality and assess inherent risk.
• D) Assess control risk.

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Definitions:

Consideration

The concept in contract law that involves something of value exchanged between parties, which is necessary for a contract to be considered legally binding.

Lesser Sum

An amount of money that is smaller in comparison to another sum, often within the context of payment obligations or settlements.

Debt

An obligation owed by one party (the debtor) to a second party (the creditor), typically involving borrowed money that is expected to be paid back with interest.

Commercial Lease

A legally binding agreement between a landlord and a business tenant for the rental of property used for commercial purposes.