An Auditor Should Re-Perform Calculations on a Random Basis to Check

question 34

True/False

An auditor should re-perform calculations on a random basis to check for accuracy.Usually,if one component has been calculated properly,the auditor can rely that the other components have also been computed properly.

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Definitions:

Compounded Annually

The process of calculating interest on both the initial principal and the accumulated interest from previous periods once a year.

Interest

The fee or rent that lenders charge for the use of their money.

Third Payment

The third installment of a payment series as agreed upon in a financial transaction or repayment plan.

Monthly Payments

Payments that are required to be made every month, often used in the context of loans, mortgages, or subscription services.