Audit Documentation

question 23

Multiple Choice

Audit documentation

• A)is the property of the client
• B)is the property of the auditor
• C)is the property of the AICPA
• D)cannot be reviewed by a court of law hearing a case involving the client

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Definitions:

Speculative Need

A financial concept where individuals or businesses hold cash or assets in speculation of market changes, expecting to profit from fluctuations in prices or exchange rates.

Transactions Need

encapsulates the necessity for exchanges or trades to occur within an economy or market for goods, services, financial assets, or currencies.

Zero-Balance Account

A bank account in which the balance is maintained at zero by automatically transferring funds from a master account.

Compensating Balance

A compensating balance is a minimum balance that must be maintained in a bank account, required by some banks in order for their customers to obtain or maintain a loan.