To Provide Efficient,reliable Evidence,confirmations Should Be ________

question 22

Multiple Choice

To provide efficient,reliable evidence,confirmations should be ________.

• A)created by the client and sent to third parties to be returned to the client
• B)created by the auditor and sent to third parties to be returned to the client
• C)created by the auditor and sent to third parties to be returned to the auditor
• D)created by the client and sent to third parties to be returned to the auditor

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income due to fixed versus variable costs in business operations.

Capital-Intensive

A business process or industry that requires large amounts of money to produce goods or services, often due to high costs of machinery and equipment.

Machinery

Physical devices or equipment designed to perform specific tasks in industrial or commercial settings, often part of the fixed assets of a business.