Significant Developments Within the Client That Affect Audit Strategy Include

question 36

Multiple Choice

Significant developments within the client that affect audit strategy include:

• A) A change in ownership and/or capital structure has occurred.
• B) Acquisitions or discontinued operations have recently occurred.
• C) The accounting information systems have been modified.
• D) All of the above

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Definitions:

Inventory

Materials and products a business holds for the purpose of sale or production.

General Journal

The primary bookkeeping ledger where all financial transactions of a business are initially recorded, prior to being posted to specific accounts.

Credit Purchases

Transactions where goods or services are bought on credit, to be paid for at a later date.

Equipment

Tangible property (other than land or buildings) that is used in the operations of a business, such as machinery or computer hardware.