Following Are Several Statements Regarding Accounting Records or Audit Documentation

question 59

Multiple Choice

Following are several statements regarding accounting records or audit documentation. Which of the statements is correct?

• A)Accounting records belong to the auditee.
• B)Documentation of an auditor's understanding of the entity's internal control system is not necessary.
• C)Audit documents may be regarded as a substitute for the company's accounting records.
• D)The independent auditor may discard audit documents after two years.

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Definitions:

Fair Deal

A set of proposals put forward by U.S. President Harry S. Truman to Congress in 1949 aimed at improving social welfare and civil rights.

Harry S. Truman

The 33rd President of the United States, serving from 1945 to 1953, known for implementing the Marshall Plan and leading the country through the end of World War II.

Federal Health Insurance

A government-provided insurance scheme designed to offer health coverage to citizens, typically funded through taxes, examples include Medicare and Medicaid in the United States.

Bracero Program

A series of agreements between the United States and Mexico, allowing Mexican laborers to work temporarily in the U.S. agricultural sector from 1942 to 1964.