What Client Information Is Needed by Auditors in Creating Lead

question 23

Multiple Choice

What client information is needed by auditors in creating lead schedules?

• A) Interim statements prepared by the client for the company's 3rd quarter financial results.
• B) General ledger information, including unadjusted ending balances and beginning balances for accounts.
• C) A schedule of adjusting entries made by the client for all balance sheet accounts.
• D) Detailed transaction information that may explain the changes in balance sheet accounts for the current year under audit.

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Definitions:

Nitroacetophenone

An organic compound containing both a nitro group and an acetyl group attached to a benzene ring, used in the synthesis of dyes and pharmaceuticals.

Bromination

A chemical reaction involving the addition of bromine (Br2) to organic compounds, typically to add bromine atoms or convert double bonds into Br-containing derivatives.

Bromobenzene

An aromatic bromine compound used frequently in organic synthesis, as a bromination precursor for making various organic products.

Benzenesulfonic Acid

An organosulfur compound characterized by a benzene ring bonded to a sulfonic acid group, used in various chemical syntheses.