The Independent Auditor Selects Several Transactions in Each Functional Area

question 55

Multiple Choice

The independent auditor selects several transactions in each functional area and traces them through the entire system, paying special attention to evidence about whether or not the control activities are in operation. This is an example of a(n) :

• A)Analytical procedure.
• B)Test of controls.
• C)Substantive procedure.
• D)Functional test.

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Definitions:

Standard Form Contract

A pre-prepared contract where most terms are set in advance with little or no negotiation between the parties, often used in routine transactions.

Legal Relationship

A connection between entities or individuals that is recognized and enforceable by law.

Radio

A radio is a technology that uses radio waves to transmit information, such as sound, by systematically modulating properties of electromagnetic energy waves transmitted through space.

Contract Formation

The process of creating a legally binding agreement, typically involving offer, acceptance, consideration, and mutual consent among parties.