An Interim Audit

question 91

Multiple Choice

An interim audit

• A) consists only of substantive testing of account balances.
• B) has the objective of verifying financial statement figures to render a professional opinion of the financial statements.
• C) has the objective of establishing the degree to which the internal control system can be relied upon.
• D) None of these answers is correct.

---

Definitions:

Endowment Effect

A psychological inclination to value possessions more highly solely due to personal ownership.

Endowment Effect

A mental occurrence in which individuals attribute increased worth to objects simply because they possess them.

Losses

Negative financial results stemming from expenses exceeding revenues or from decreases in asset values.

Gains

The benefits or profits gained from a particular activity or financial transaction.