Once the Auditor Determines That the Company's Policy for Accruing

question 32

Multiple Choice

Once the auditor determines that the company's policy for accruing wages is consistent with prior years, the appropriate audit procedure to test for accuracy and cutoff is

• A) recalculating the client's accrual.
• B) performing extensive tests of controls.
• C) performing extensive tests of details.
• D) none of the above.

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Definitions:

Single Entity

An individual unit, object, or being considered as distinct and independent.

Profile-Of-A-Surface Tolerance

Profile-of-a-surface tolerance is a geometric dimensioning and tolerancing specification controlling the 3D shape and variation of a surface across its entire extent.

Form

Refers to the shape, structure, or visible configuration of an object.

Size

The physical dimensions or magnitude of an object or part.