An Auditor Would Be Least Likely to Use Confirmations in Connection

question 61

Multiple Choice

An auditor would be least likely to use confirmations in connection with the examination of:

• A) inventories.
• B) long-term debt.
• C) property, plant, and equipment.
• D) stockholders' equity.

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Definitions:

General Ledger Accounts

The complete record of all financial transactions over the life of a company, organized by account.

Income Statement Accounts

Income statement accounts are those financial accounts that track the revenues, expenses, gains, and losses of a business, which together determine its net profit or loss for a period.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate revenues and expenses to the period in which they actually occurred.

Office Supplies

Items used in an office for daily work such as pens, paper, staplers, and calculators.