With Respect to Records in an Auditor's Possession

question 29

Multiple Choice

With respect to records in an auditor's possession:

• A) copies of client records incorporated into audit work papers must be returned to the client upon request.
• B) work sheets, in lieu of a general ledger, belong to the auditor and need not be furnished to the client upon request.
• C) an extensive analysis of inventory prepared by the client at the auditor's request are work papers which belong to the auditor and need not be furnished to the client upon request.
• D) the auditor who retains copies of client records must return the original records upon request.

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Definitions:

Maturity Value

The amount that will be paid to the holder of a financial instrument at its maturity date, including both the principal and any accrued interest.

Due Date

The specific date by which an obligation, such as a payment or task, must be completed or fulfilled.

Journalize

The process of recording transactions in a company's journal, detailing the financial activities and their impact on accounts.

Net Sales

The amount of revenue generated from sales of goods or services after deducting returns, allowances, and discounts.