Practically All Audits Follow a Similar Sequence of Activities That

question 71

Multiple Choice

Practically all audits follow a similar sequence of activities that can be divided into four stages.Organizing the audit team and the physical examination of assets are components of which two separate audit stages?

• A)audit planning; evaluation of audit evidence
• B)audit planning; collection of audit evidence
• C)collection of audit evidence; communication of audit results
• D)audit planning only

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Definitions:

Profit

The financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Consideration

An item of worth provided by each party involved in a contract, motivating them to agree to swap obligations reciprocally.

Ownership Right

The legal right to possess, use, control, and dispose of property or an asset.

Possessory Right

This term refers to the right of an individual or entity to possess or control a certain property or asset.