Audit Documents That Record the Procedures Used by the Auditor

question 22

Multiple Choice

Audit documents that record the procedures used by the auditor to gather evidence should be:

• A)considered the primary support for the financial statements being examined.
• B)viewed as the connecting link between the accounting records and the financial statements.
• C)designed in an orderly fashion to facilitate the review of audit work by the senior, manager, and partner on the engagement.
• D)retained until the audited entity ceases to be a client.

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Definitions:

Word-of-Mouth Communication

The act of consumers providing information to other consumers about products or services, typically viewed as a trustworthy source of information.

Formal Promotion Channels

Established pathways within an organization for disseminating information about promotions and advancement opportunities, often structured and officially sanctioned.

Negative Word of Mouth

The act of consumers sharing unfavorable opinions or experiences about a product or service with others.

Credibility

The quality of being trusted, convincing or believable.