An Auditor Wishes to Perform Tests of Controls on a Client's

question 123

Multiple Choice

An auditor wishes to perform tests of controls on a client's purchasing procedures.If the control activities leave no audit trail of documentary evidence,the auditor most likely will test the procedures by

• A)Confirmation and observation.
• B)Observation and inquiry.
• C)Analytical procedures and confirmation.
• D)Inquiry and analytical procedures.

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Definitions:

Sale

A transaction between two parties where the buyer receives goods, services, or assets in exchange for money or other forms of compensation.

Issuing Bonds

The process of a borrower offering bonds to investors as a form of debt securities to raise capital.

Discount

A reduction in the price of goods or services offered by a seller, or the amount by which a bond is sold below its par value.