Which of the Following Procedures Would Be Least Likely to Be

question 7

Multiple Choice

Which of the following procedures would be least likely to be included in an auditor's test of controls?

• A)Observation.
• B)Enquiry.
• C)Confirmation.
• D)Inspection.

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Definitions:

Put Option

An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Interest Rate

The percentage of a sum of money charged for its use, often expressed on an annual basis.

Financial Risk Management

The practice of protecting economic value in a firm by using financial instruments to manage exposure to risk, particularly credit risk and market risk.