Which One of the Following Will an Audit of a Company's

question 32

Multiple Choice

Which one of the following will an audit of a company's internal control include?

• A)Reliance on client's internal controls testing.
• B)Sampling of key controls and related testing.
• C)Concluding on the accuracy of income statement balances.
• D)Design of the internal control system by the auditor.

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Definitions:

Debit Column

The Debit Column is the left-hand side of an account record in double-entry bookkeeping, used to record increases in asset, expense, and loss accounts, and decreases in liability, equity, and revenue accounts.

General Journal

A primary accounting record used to document all financial transactions in chronological order.

Services Provided

Activities performed by a company or individual for the benefit or use of another party, typically in exchange for compensation.

Debit

An entry on the left side of an account ledger, indicating an increase in assets or expenses, or a decrease in liabilities, equity, or revenue.