Which of the Following Is not a Primary Procedure Auditors

question 93

Multiple Choice

Which of the following is not a primary procedure auditors use to obtain sufficient knowledge about the design of the relevant controls and to determine whether they have been implemented (placed in operation) ?

• A)Previous experience with the entity.
• B)Inquiries of appropriate management personnel.
• C)Performance of substantive procedures.
• D)Inspection of document and records.

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Definitions:

Profit Centers

Divisions or departments within a business that are treated as separate entities for the purpose of financial reporting, with their own revenues and expenses.

Sales

Transactions between a seller and a buyer where goods or services are exchanged for money.

Costs

The monetary value required to produce goods or services, including materials, labor, and overhead.

Transfer Price

The price at which divisions of a company transact with each other, such as the sale of goods or services, often used for internal accounting.