Which of the Following Questions Is an Auditor Most Likely

question 16

Multiple Choice

Which of the following questions is an auditor most likely to include on an internal control questionnaire?

• A) Are the assets that secure notes payable critically needed for the entity's continued existence?
• B) Are two or more authorized signatures required on cheques that repay notes payable?
• C) Are the proceeds from notes payable used for the purchase of non-current assets?
• D) Are direct borrowings on notes payable authorized by the board of directors?

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Definitions:

Strategy Frame

A cognitive structure or approach guiding the selection and implementation of strategies in problem-solving or decision-making processes.

Agenda Setting

A communication theory that suggests the media has the power to determine which issues are considered important by the public.

Media

Means of mass communication, including newspapers, television, radio, and the internet, that disseminate information or entertainment to a wide audience.

Issues

Important topics or problems for debate or discussion.