In Describing the Cycle Approach to Segmenting an Audit, Which

question 74

Multiple Choice

In describing the cycle approach to segmenting an audit, which of the following statements is not true?

• A) All general ledger accounts and journals are included at least once.
• B) Some journals and general ledger accounts are included in more than one cycle.
• C) The "capital acquisition and repayment" cycle is closely related to the "acquisition of goods and services and payment" cycle.
• D) The "inventory and warehousing" cycle may be audited at any time during the engagement since it is unrelated to the other cycles.

---

Definitions:

Empirical Scrutiny

The examination and validation of hypotheses or theories through direct observation and experimentation, fundamental to the scientific method.

Tentative Statement

A provisional or not fully committed declaration, subject to further confirmation or investigation.

In-depth Study

An extensive and detailed examination of a subject to gain a deeper understanding of its aspects or nature.

Subject Group

A set of individuals or items selected for participation in an experiment or study.