Which of the Following Arranges the General Types of Audit

question 46

Multiple Choice

Which of the following arranges the general types of audit tests in the order they are normally performed in an audit?

• A)Substantive procedures, tests of controls, and risk assessment procedures.
• B)Substantive procedures, risk assessment procedures, and tests of controls.
• C)Risk assessment procedures, tests of controls, and substantive procedures.
• D)Risk assessment procedures, substantive procedures, and tests of controls.

---

Definitions:

Daily Posting

The process of recording and updating financial transactions in the books of accounts on a daily basis.

Accounts Receivable

Monetary claims a company holds against customers for supplied goods or services awaiting financial settlement.

Sales Journal

A specialized accounting journal used to keep track of the sales of items on credit.

Accounts Receivable

Accounts receivable refers to the money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.