Which of the Following Is the First Step an Auditor

question 11

Multiple Choice

Which of the following is the first step an auditor performs when performing analytical procedures?

• A) Determine appropriate procedures for investigating the reasons for differences if they are significant
• B) Draw conclusions
• C) Identify the computation, comparison or relationship to be made or investigated
• D) Assess the reliability of any data to be used

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Definitions:

Promissory Note

A financial instrument involving a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Credit Instrument

A document that represents a legal agreement involving any kind of financial credit or loan arrangement, including promissory notes, bonds, and letters of credit.

Payee

A person to whom a payment is made or is made payable.

Bearer Paper

A negotiable instrument that entitles the holder or bearer to receive the face value of the document upon presentation.