When Undertaking Tests of Controls Which Are Related to Controls

question 40

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) Accuracy.
• B) Completeness.
• C) Occurrence.
• D) Rights and obligations.

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Definitions:

Accounts Receivable

Represents money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Accounts Payable

Liabilities of a business that are due to be paid to creditors within a short period, usually one year.

General Journal

A primary accounting record used to track all financial transactions of a business, entered in chronological order.

Office Supplies

Consumable items used in an office setting, such as paper, pens, and office equipment.