Examlex

Solved

An Auditor Tests a Sample of Transactions for Proper Authorization

question 2

Multiple Choice

An auditor tests a sample of transactions for proper authorization. Assume the auditor performs test of transactions and concludes that the authorization control is operating effectively when in fact it is not, this is termed:


Definitions:

Partners' Capital Statement

A financial statement that shows the changes in each partner’s equity in the business over a specific period of time.

Drawings

Withdrawals of cash or other assets from a business by the owner for personal use.

Capital Statement

A financial statement that outlines the changes in owners' equity over a specific period.

Drawings

Withdrawals made by an owner from the business for personal use, reducing the capital account of the owner.

Related Questions