Which of the Following Is Not True Regarding the Performance

question 68

Multiple Choice

Which of the following is not true regarding the performance of a walkthrough?

• A) It is a type of ICFR consisting of a set of related procedures that are performed together for the purpose of identifying important control points or deficiencies in controls.
• B) The auditor follows a transaction from origination through the processes and information systems until it is recorded in the accounting books.
• C) It combines the audit procedures of tracing, inquiry, and observation.
• D) It is an efficient way for an auditor to test the operating effectiveness of controls.

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Definitions:

Level 3 Assets

These are financial assets and liabilities that are hard to value because they do not have a readily observable market price, often requiring significant estimation in their valuation.

Fair Value Accounting

An accounting approach where companies measure and report the values of their assets and liabilities on the basis of the actual or estimated fair market prices.

Book Value

The net value of a company's assets minus its liabilities, as recorded on its financial statements.

Market Valuations

The process of determining the present value of an asset or a company based on market prices, often used to evaluate the worth of stocks or other securities.