Which of the Following Audit Procedures Would Be Least Likely

question 16

Multiple Choice

Which of the following audit procedures would be least likely to disclose the existence of related party transactions of a client during the period under audit?

• A)Reading "conflict-of-interest" statements obtained by the client from its management.
• B)Scanning accounting records for large transactions at or just prior to the end of the period under audit.
• C)Reading minutes of the Board of Directors meetings for authorization or discussion of material transactions.
• D)Confirming purchases and sales transactions with the vendors and/or customers involved.

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Definitions:

Corporate Profits Taxes

Taxes levied on the earnings after expenses and deductions of corporations, similar to corporate income tax but emphasizing the taxation on net profits.

Ronald McDonald's House

Programs providing a home away from home for families so they can stay close by their hospitalized child at little to no cost.

GDP

The Gross Domestic Product measures the aggregate value of all final goods and services produced within a country over a defined time span.

National Income

The total value of all goods and services produced by a country's economy over a specific period, after accounting for depreciation.