Professional Scepticism Does Not Involve

question 4

Multiple Choice

Professional scepticism does not involve:

• A)being suspicious when evidence contradicts documents held by their client or enquiries made of client personnel.
• B)seeking independent evidence to corroborate information provided by their client.
• C)the professional requirement that all management representations be substantiated with supporting documentation.
• D)none of the above.

---

Definitions:

Sales

The total amount of goods or services sold by a company within a specific period, reflecting the primary source of its revenue.

Nominal Annual Cost

The cost associated with a financial transaction or investment, expressed as a yearly rate without adjustment for inflation.

Net Days

This term signifies the number of days within which a payment is due after an invoice has been received.

Cash Conversion Cycle

A metric that expresses the time (days) it takes for a company to convert its investments in inventory and other resources into cash flows from sales.