When Testing for Accuracy, an Auditor Searchfor Evidence

question 17

Multiple Choice

When testing for accuracy, an auditor searchfor evidence:

• A) to verify that a recorded transaction or event took place and relates to the entity.
• B) that all disclosures that should have been included in the financial statements have been included.
• C) that transactions and events have been recorded at appropriate amounts.
• D) to verify that recorded assets are owned by the entity.

---

Definitions:

Price Rise

An increase in the cost of goods or services, often equated with inflation but can also indicate a market adjustment due to supply and demand.

Quantity Fall

This term is not widely recognized as a standard economic or financial term. NO.

Dominant Strategy

A strategy in game theory that yields the highest payoff for a player no matter what the other players do.

Annual Profit

The total earnings a company makes in one fiscal year after all expenses and taxes have been subtracted from its total revenue.