The Final Phase of an Audit Includes Which of the Following

question 8

Multiple Choice

The final phase of an audit includes which of the following?

• A) performing substantive tests of account balances
• B) gaining an understanding of the client's internal control system
• C) confirming the terms of the audit engagement with the auditor
• D) determining whether the audit evidence obtained is sufficient and appropriate to reduce the risk of material misstatements in the financial statements to an acceptably low level

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Definitions:

Present Value

The value at present of future monetary amounts or streams of cash, when calculated with an agreed-upon rate of profit.

Profit Per Unit

The profit earned by a company for each unit of product sold.

Present Value

The immediate worth of a prospective sum of money or sequence of cash flows, with a defined yield rate factored in.

Market Rate Of Interest

The prevailing rate of interest observed in the marketplace for securities or loans, influenced by factors such as supply and demand, inflation, and monetary policy.