Gaining an Understanding of a Client Includauditors Learning How Their

question 43

Essay

Gaining an understanding of a client includauditors learning how their clients measure their performance. How is this information used by auditors in audit planning and what are examplof non-financial performance measurcommonly used by auditors?

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Definitions:

Finance Charges

The total cost of borrowing, including interest and any other charges assessed by the creditor.

APR

The Annual Percentage Rate, a measure used to calculate the cost of borrowing, including interest and other fees, shown as a yearly rate.

Payday Loan

A type of short-term borrowing where a lender provides high-interest credit based on a borrower's income and credit profile, typically to be repaid by the next payday.

Average Daily Balance

The average amount owed per day during a billing cycle.