Which of the Following Procedures Would an Auditor Most Likely

question 53

Multiple Choice

Which of the following procedures would an auditor most likely include in the initial planning of an examination of financial statements?

• A)Assess the need for the use of specialists in the audit.
• B)Inquiring of the client's attorney as to any claims that are likely to be asserted.
• C)Perform detailed testing of the individual financial statement accounts.
• D)Determining whether necessary internal controls procedures are being applied as prescribed.

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Definitions:

Units Produced

The total number of units of product created by a company during a specific period.

Budgeted Production Units

The number of units a company plans to produce over a specific period as estimated during the budgeting process.

Sales

Sales refer to the transactions in which goods or services are transferred from the seller to the buyer for money or value, representing the primary source of revenue for most businesses.

Cash Disbursements

The actual outflow of cash for expenses, such as paying salaries, suppliers, and other operating expenses.