Which of the Following Was First in the Evolution of Auditing

question 19

Multiple Choice

Which of the following was first in the evolution of auditing approaches?

• A) Business risk approach.
• B) Transactions cycle approach.
• C) Statement of financial position approach.
• D) Financial risk approach.

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Definitions:

Recognition Criteria

The conditions that must be met for a particular item to be recognized in the financial statements, according to accounting standards.

Revenue Recognition

The accounting principle that dictates the specific conditions under which income becomes recognized as revenue in the financial statements.

Secondary Characteristics

Refers to the additional properties or features of a financial instrument, entity, or market mechanism that support its primary functions.

Accounting Information

Data related to the financial transactions and status of an organization, used for analysis, decision making, and financial reporting.