AS 5 Requires the Audit Team to Do All the Following

question 118

Multiple Choice

AS 5 requires the audit team to do all the following except

• A) Evaluate the severity of each control deficiency that comes to their attention.
• B) Document the process used to determine significant accounts and disclosures and major classes of transactions.
• C) Test all internal controls in the company.
• D) All the above.

---

Definitions:

Cash Collections

The process of gathering all cash received from sales, services, or other sources.

Cash Budget

A forecast of cash inflows and outflows over a specific period, used for cash management.

Cash Receipts

The collection of money, typically in the form of cash or checks, by a business from its customers for goods or services provided.

Cash Disbursements

Outflows of cash for expenses, purchase of assets, or repayment of debt by a business within a given period.