Which One of the Following Statements Is False

question 68

Multiple Choice

Which one of the following statements is false?

• A) Auditing includes the process of gathering evidence to test assertions.
• B) No general audit program suits the needs for all situations.
• C) Even though all audits are different, they can all be approached in the same manner.
• D) All audits involve testing management's assertions contained in written communications to another party and independently gathering evidence to test the relevant assertions.

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Definitions:

Goods Purchased

Items acquired by a company for the purpose of resale in the ordinary course of business, sometimes after undergoing further production.

Payment of Freight

This term refers to the cost associated with transporting goods, typically paid by the shipper or receiver.

Credit Terms

Credit terms are the conditions under which a seller extends credit to a buyer, detailing the repayment period, discount for early payment, and penalty for late payment.

Merchandise

Products or goods that are bought and sold by businesses.