Which of the Following Is Not a Correct Combination of Terms

question 47

Multiple Choice

Which of the following is not a correct combination of terms and related type of audit evidence?

• A)Inquire - inquiries of client
• B)Count - physical examination
• C)Recompute - documentation
• D)Read - documentation

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Definitions:

Variable Costs

Expenses that vary in direct proportion to changes in levels of production or sales activity, such as raw materials and direct labor costs.

Net Loss

The amount by which expenses exceed revenues.

Variable Costs

Expenses that vary in relation to the quantity of products or services a company generates.

Fixed Costs

Financial obligations that are stable irrespective of the business's production or sales figures, such as rental payments, salary bills, and insurance.