Audit Documentation

question 83

Multiple Choice

Audit documentation

• A)is referred to as an electronic file
• B)includes a record of the audit procedures performed
• C)includes a record of the audit file obtained
• D)includes a record of the conclusions reached by the auditor from a review of the evidence
• E)may not be recorded on paper
• F)both A and B
• G)both B and D
• H)both C and D

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Definitions:

Gross Profit

A company's revenue minus its cost of goods sold, indicating the efficiency of a company in managing its production and labor costs.

Net Income

A company's total earnings or profit, calculated by subtracting total expenses from total revenues.

Income Before Income Taxes

This is the earnings of a company before accounting for income taxes, representing the amount made from ordinary operations.

Net Income

The total profit of a company after all expenses, taxes, and losses have been subtracted from total revenue.