According to the CICA Handbook,auditors Should Watch for Unusual Transactions

question 3

Essay

According to the CICA Handbook,auditors should watch for unusual transactions in the course of their audit.List four examples of these transactions.

---

Definitions:

Monthly Interest Rate

The percentage of interest charged or earned on a principal amount on a monthly basis.

Variable Cost

A cost that changes in proportion to changes in the level of output or activity.

Accounts Receivable Balance

The accounts receivable balance represents the total amount of money owed to a company by its customers for goods or services rendered but not yet paid for.

Inventory Period

The time it takes to acquire and sell inventory.