Examples of Controls Tested in the Period-End Financial Reporting Process

question 84

Multiple Choice

Examples of controls tested in the period-end financial reporting process include:

• A) an estimation of the contingent liabilities at year-end.
• B) a review of appropriate authorization over paid invoices.
• C) the client's accounting policies conform to GAAP and/or IFRS.
• D) All of the above.

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Definitions:

Revenue Variance

The difference between actual revenue earned and the budgeted or forecasted revenue.

Actual Revenue

The amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise.

Static Planning Budget

A budget based on a set level of activity, unchanged over the budget period and not adjusted for actual activity levels.

Spending Variance

The difference between the actual amount of an expense and the budgeted or planned amount.