Auditors Should Design the Written Audit Plan So That

question 12

Multiple Choice

Auditors should design the written audit plan so that:

• A)all material transactions will be selected for substantive testing.
• B)substantive tests prior to the balance sheet date will be minimized.
• C)the audit procedures selected will achieve specific audit objectives.
• D)each account balance will be tested under either tests of controls or tests of transactions.

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Definitions:

IRS

The Internal Revenue Service, a U.S. government agency responsible for tax collection and tax law enforcement.

Business Days

Refers to the standard days in a week (excluding weekends and public holidays) considered as working days for conducting business.

Deposit

A sum of money placed in an account or given as security for a financial transaction or agreement.

Checking Account

A bank account that allows the holder to write checks, use electronic debit, and make deposits, meant for frequent transactions.