The Auditor Normally Considers Both Underlying Accounting Records and Corroborating

question 40

Multiple Choice

The auditor normally considers both underlying accounting records and corroborating information in the audit process.Underlying accounting records do not include which of the following items?

• A)Evidence of controls.
• B)Minutes of meetings.
• C)Checks,invoices,and contracts.
• D)General and subsidiary ledgers.

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Definitions:

Research and Development

The investigative activities a business conducts to improve existing products and procedures or to lead to the development of new products and procedures.

Liquidity

The straightforward process of converting an asset to cash without any effect on its market price.

Forecasting Error

The difference between actual outcomes and previously predicted values, important in assessing the accuracy of projections.