In Performing Analytical Procedures in the Cash Area, the Auditor

question 38

Multiple Choice

In performing analytical procedures in the cash area, the auditor will usually:

• A) compare this year's balance(s) to the operating profit
• B) compare this year's balance(s) to total assets.
• C) compare this year's balance(s) to the level of sales as a percentage.
• D) often won't perform any analytical review.

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Definitions:

Contributory Negligence

A theory in tort law under which a complaining party’s own negligence contributed to his or her injuries. Contributory negligence is an absolute bar to recovery in some jurisdictions.

Proximate Cause

Legal cause; exists when the connection between an act and an injury is strong enough to justify imposing liability.

Assault

An intentional act by one person that creates an apprehension in another of an imminent harmful or offensive contact.

Immediate Physical Harm

The urgent threat or actual occurrence of bodily injury or damage to a person's health.