An Auditor Examines All Documents Related to the Acquisition,repair History,and

question 89

Multiple Choice

An auditor examines all documents related to the acquisition,repair history,and disposal of a firm's delivery van.This is an example of collecting audit evidence by

• A)confirmation.
• B)reperformance.
• C)vouching.
• D)analytical review.

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Definitions:

Margin

Net operating income divided by sales.

Average Operating Assets

The average value of assets used during a specific period in the day-to-day operations of a business.

Net Operating Income

An entity's income from operations, calculated by subtracting operating expenses from revenues generated from normal business operations, excluding non-operating income and expenses.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the owners' claim on the business assets.