To Make a Final Evaluation as to Whether Sufficient Appropriate

question 23

Multiple Choice

To make a final evaluation as to whether sufficient appropriate evidence has been accumulated, the auditor will do all of the following except

• A) review the audit documentation for the entire audit to determine whether all material classes of transactions have been adequately tested.
• B) make sure that all parts of the audit program have been accurately completed and documented.
• C) obtain the management representation letter.
• D) decide whether the audit program is adequate.

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Definitions:

Fair Value Method

An accounting approach that estimates the price to sell an asset or settle a liability, based on current market conditions.

Short-term Investments

Investments that are easily convertible into cash, typically within five years or less, used to generate income on surplus funds.

Recognition

The formal acknowledgment in accounting that a transaction or event has occurred and should be recorded in the financial statements.

Government Bonds

Debt securities issued by a government to support government spending and obligations, often seen as low-risk investments.