If an Audit Program Calls for the Auditor to Interview

question 34

Multiple Choice

If an audit program calls for the auditor to interview the client about an important control activity, this is an example of which type of audit procedure?

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

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Definitions:

ESOs

Employee Stock Options; the right granted to employees to buy a set amount of company shares at a fixed price.

Job Leaving

This refers to the act of an employee voluntarily terminating their employment with a company.

American Call Option

An option contract that allows the holder to buy an asset at a specific price before or at the expiration of the option.

Expiration Date

In finance, it typically refers to the last day on which options or futures contracts are valid.