The Most Efficient Way for the Auditor to Determine Whether

question 44

Multiple Choice

The most efficient way for the auditor to determine whether the accounts in the business process are prepared in accordance with the applicable financial reporting framework used by the company is for the auditor to consider

• A)misstatements that have occurred in the business process
• B)misstatements that might occur in the business process and then gather evidence to see if the misstatements have occurred
• C)misstatements that are reasonably certain to occur in the business process and then go gather evidence to see if the misstatements have occurred
• D)intentional misstatements that might occur in the business process and then go gather evidence to see if the misstatements have occurred

---

Definitions:

Investment Opportunity

An investment opportunity represents a situation where an individual or organization can invest capital with the expectation of achieving a return on the invested amount.

Margin

This is the difference between the selling price of a product and its cost, expressed as a percentage of the selling price.

Turnover

The speed at which a company's stock or assets are rotated or disposed of over a specific timeframe.

Return On Investment

An indicator used to assess the gain or loss generated from an investment relative to its cost.