When Determining the Inherent Risk Related to an Account Balance

question 14

Multiple Choice

When determining the inherent risk related to an account balance, an auditor theoretically does not explicitly consider the:

• A)liquidity of the account.
• B)degree of management estimation involved in determining the proper account balance.
• C)related internal control policies and procedures.
• D)complexity of calculations involved.

Interpret manufacturing statements and financial reports related to manufacturing costs.

Understand the elements of sentence structure and paragraph coherence.

Identify and correct common grammatical errors such as sentence fragments, run-on sentences, and comma splices.

Differentiate between active and passive voice and understand their uses in business writing.

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Definitions:

Goals and Tasks

Objectives that an organization or individual plans to achieve, along with the specific actions required to attain them.

Resources Available

The assets, materials, and other supplies that are readily accessible and can be used to achieve goals or complete tasks.

High Profit

A significant amount of earnings exceeding the costs and expenses of operating a business or investment.

Business Growth Stage

The phase in a company's lifecycle where it experiences expansion through increased market share, customer base, or product lines.