Which of the Following Is Not a Form of Evidence

question 54

Multiple Choice

Which of the following is not a form of evidence obtained through the auditor's direct personal knowledge?

• A) observation
• B) reperformance
• C) inquiry
• D) inspection

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Definitions:

Net Operating Income

Represents the profitability from normal business operations, excluding income and expenses from unusual or non-recurring items.

Credit Card Company

A Credit Card Company is a financial institution that issues credit cards to consumers, extending a line of credit for purchases with the agreement that the consumer will pay back the borrowed amount, plus any applicable interest.

Allowance for Doubtful Accounts

Allowance for doubtful accounts is an accounting provision that estimates the amount of receivables that may not be collectible due to customer defaults.

Credit Sales

Sales made on credit, allowing the buyer to pay the seller at a later date.