Which of the Following Is Not a Purpose of the Review

question 97

Multiple Choice

Which of the following is not a purpose of the review of audit documentation by a supervisor during fieldwork?

• A) To ensure that all appropriate steps in the audit plan is performed.
• B) To ensure that referencing among audit documentation is clear.
• C) To ensure that the explanations included in the audit documentation are understandable.
• D) To ensure that the overall scope of the audit is appropriate.

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Definitions:

Profit

The financial gain realized when the revenues generated from business activities exceed the expenses and costs associated with operating the business.

Unrealised Profit

Profits that have been earned but not yet realized through a transaction, such as an increase in the value of an investment that has not been sold.

Partial Goodwill Method

A method of accounting for a business combination where goodwill is only recorded in relation to the parent's share of ownership in the subsidiary.

NCI

Non-controlling interest (NCI) refers to the portion of equity interest in a subsidiary not owned directly or indirectly by the parent company.