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:

Real Interest Rate

The interest rate adjusted for inflation, representing the true cost of borrowing and the real yield to lenders or investors.

Net Capital Outflow

The difference between the domestic country's purchase of foreign assets and the foreign purchases of the domestic country's assets over a specified period, reflecting the flow of capital across borders.

Capital Asset

A long-term asset such as equipment, real estate, or machinery that a company uses in its operations to generate wealth.

Loanable Funds

The market where savers provide funds to borrowers, usually influencing interest rates.