Why Do Auditors Inspect Records and Documents

question 7

Multiple Choice

Why do auditors inspect records and documents?

• A) to check the dates of transactions
• B) for evidence that management have authorized significant purchases
• C) to check that a transaction occurred
• D) all of the above

Apply the concept of continuous compounding to calculate future values.

Evaluate investment opportunities using present value and future value concepts.

Understand and calculate the effective annual rate (EAR) for mortgages and loans.

Understand the concept of time value of money and its applications.