Which of the Following Is not a Primary Procedure Auditors

question 93

Multiple Choice

Which of the following is not a primary procedure auditors use to obtain sufficient knowledge about the design of the relevant controls and to determine whether they have been implemented (placed in operation) ?

• A)Previous experience with the entity.
• B)Inquiries of appropriate management personnel.
• C)Performance of substantive procedures.
• D)Inspection of document and records.

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Definitions:

Shares Of Common Stock

Units of ownership in a corporation, providing shareholders with a proportion of the company's profits and voting rights.

Price-Earnings Ratio

A financial ratio that compares a company's market price per share to its earnings per share, indicating the value that investors place on a company's earning capacity.

Market Price

The price charged for an item on the open market.

Fixed Costs

Expenses that do not change with the level of production or business activity, such as rent, salaries, and insurance.