If Auditors Believe There Is a Risk That Expenses Incurred

question 10

Multiple Choice

If auditors believe there is a risk that expenses incurred before year-end will be excluded from the current year's expenses, they will:

• A) Send out confirmation requests to a sample of the client's debtors.
• B) Trace transactions recorded close to year-end to source documentation.
• C) Perform analytical review analysis on the client's statement of financial position.
• D) None of the above.

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Definitions:

Community Enforcer

An individual or group that ensures adherence to community norms and rules.

Written Law

Laws that are formally enacted and codified in legislation, as opposed to unwritten or customary laws.

Boss Massaging

The practice of currying favor, or kissing up, with a manager to achieve your own goals.

Common Perception

A widely held view or understanding about a particular thing or situation.