Narratives, Flowcharts, and Internal Control Questionnaires Are Three Common Methods

question 28

Multiple Choice

Narratives, flowcharts, and internal control questionnaires are three common methods of

• A) testing the internal controls.
• B) documenting the auditor's understanding of internal controls.
• C) designing the audit manual and procedures.
• D) documenting the auditor's understanding of a client's organizational structure.

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Definitions:

Receivables Period

The amount of time it takes for a company to collect payments owed by its customers after a sale has been made.

Selling Price

The amount of money charged for a product or service, or the sum obtained from the sale of an asset.

Receivables

Money owed to a company by customers for goods or services that have been delivered or used but not yet paid for.

Ending Cash Balance

The amount of cash a company has available at the end of a financial period.