When Undertaking Tests of Controls Which Are Related to Controls

question 12

Multiple Choice

When undertaking tests of controls which are related to controls built around a major transaction flow, which assertion would be of least interest to the auditor?

• A) Occurrence.
• B) Accuracy.
• C) Cut-off.
• D) Valuation or allocation.

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Definitions:

Mentally Incompetent Persons

Individuals who are legally recognized as unable to make certain types of decisions for themselves due to mental disability or illness.

Disaffirmed

The act of denying or rejecting a contract or agreement, typically by one who was not legally capable of giving consent at the time of the agreement.

Liability

A legal obligation or responsibility; in financial terms, it refers to debts or monetary obligations a company or individual owes to others.

Employer

A person or entity that hires and employs workers, providing wages or salary in exchange for labor or services.