Audit Documents

question 95

Multiple Choice

Audit documents

• A) are kept by the client for easy reference for their accounting staff.
• B) should be considered as a substitute for the clients accounting records.
• C) are designed to facilitate the review and supervision of the work performed by the audit team by a reviewing partner.
• D) prepared during the engagement are the property of the client once the audit bill is paid.

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Definitions:

Stated Value

A nominal value assigned to a share of stock by the company's board of directors, which is not related to the market value of the stock.

Accounting Purposes

The specific reasons or objectives for maintaining and processing financial records, including compliance, reporting, and decision-making needs.

Par Value

Par value is the nominal or face value of a bond, share of stock, or coupon as stated by the issuing party, often used in determining its redemption or constituent stock value.

Authorized Shares

Authorized shares are the maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation.