Which of the Following Steps Should an Auditor Perform First

question 50

Multiple Choice

Which of the following steps should an auditor perform first to determine the existence of related parties?

• A)Examine invoices, contracts, and purchasing orders.
• B)Request a list of related parties from management.
• C)Review the company's business structure.
• D)Review proxy and other materials filed with the SEC.

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Definitions:

Operations

Refers to the mathematical and logical computations that can be performed on data, such as addition, subtraction, and comparison.

Mixed Expression

Refers to an expression in programming that contains different types of operands, such as combining integers and floats in calculations.

Floating-Point Numbers

Numbers that contain fractional parts represented in a way that can support a wide range of values with varying levels of precision.

Integer Operands

The integers (whole numbers) that are used as input for an operation in computer programming or mathematics.