In Gaining the Understanding of a Business Process,the Auditor Will

question 38

Multiple Choice

In gaining the understanding of a business process,the auditor will be concerned with: (i) how data is handled (ii) the steps that are followed (iii) the internal controls that are built into the process (iv) the potential for errors to occur that could result in the financial statements being materially misstated.

• A)only (i)(ii)
• B)only (ii)(iii)
• C)only (i)(ii)(iv)
• D)(i)(ii)(iii)(iv)

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Definitions:

Cable Television

A system of delivering television programming to paying subscribers via radio frequency signals transmitted through coaxial cables or digital light pulses through fiber-optic cables.

Per Capita Income

A measure of the average income earned per person in a certain area, such as a country or city, calculated by dividing the area's total income by its population.

World Price

The international market price at which goods are traded between countries.

Marginal Revenue

The additional income earned from selling one more unit of a good or service.