An Auditor Is Least Likely to Test the Internal Controls

question 3

Multiple Choice

An auditor is least likely to test the internal controls that provide for

• A) Approval of the purchase and sale of marketable securities.
• B) Classification of revenue and expense transactions by product line.
• C) Segregation of the functions of recording disbursements and reconciling the bank account.
• D) Comparison of receiving reports and vendors' invoices with purchase orders.

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Definitions:

Demand Schedule For Capital

A table or graph showing the amount of capital that businesses wish to invest at different possible rates of interest.

Marginal Revenue Product

Incremental revenue obtained from the use of one more unit of a production input, such as labor or capital.

Marginal Physical Product

The additional output resulting from using one more unit of a physical input, holding all other inputs constant.

Complement To Labor

Goods, services, or technologies that enhance the productivity or efficiency of labor.