An Audit Basically Consists of Having the Auditor Form an Opinion

question 49

Multiple Choice

An audit basically consists of having the auditor form an opinion regarding management's financial statement assertions.The auditor therefore develops general and specific program steps to apply to the accounts and transactions.In a particular case,s/he might do this by:

• A)Tracing sales invoices to shipping documents to tests the completeness of reported sales.
• B)Tracing shipping documents to sales invoices to test the occurrence of reported sales.
• C)Tracing sales invoices to shipping documents to test the occurrence of reported sales.
• D)Tracing sales invoices to shipping documents to test the completeness of recorded accounts receivable.

---

Definitions:

Ancient Rock

Rock formations dating back millions of years, often providing information on the Earth's geological and evolutionary history.

Prehistoric Cultural Sites

Locations that provide archaeological evidence of human activity and habitation before recorded history or the advent of written language.

Recent Lava Flows

Molten rock that has erupted from a volcano and solidified on the earth's surface in the recent geological past.

Angular Unconformity

A geological feature where newer layers of sediment or rock rest upon older layers that have been tilted or folded, indicating a significant change in depositional environments.