Why Does the Auditor Divide the Financial Statements into Smaller

question 95

Multiple Choice

Why does the auditor divide the financial statements into smaller segments?

• A) Using the cycle approach makes the audit more manageable.
• B) Most accounts have few relationships with others and so it is more efficient to break the financial statements into smaller pieces.
• C) The cycle approach is used because auditing standards require it.
• D) All of the above are correct.

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Definitions:

Disparate Impact Discrimination

A form of discrimination that occurs when a neutral policy disproportionately affects a protected group, even if the policy was not intended to be discriminatory.

Occupational Safety and Health Act

United States legislation aimed at ensuring workplace safety and health standards to prevent worker injuries and illnesses.

Department of Labor

A federal agency responsible for promoting the welfare of job seekers, wage earners, and retirees in the United States by improving working conditions and ensuring employment rights.

Taft-Hartley Act

A 1947 federal law that restricts the activities and powers of labor unions in the United States.