When Testing the Controls for the Completeness Transaction-Related Audit Objectives

question 39

Multiple Choice

When testing the controls for the completeness transaction-related audit objectives,

• A) failure to record the acquisition of goods or services will generally understate net income.
• B) failure to record the acquisition of goods or services has no impact on the balance sheet.
• C) it is generally easy for the auditor to determine whether unrecorded transactions exist.
• D) the audit time for accounts payable can be reduced if the client has effective internal controls and the auditor properly tests those controls.

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Definitions:

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