Why Do Auditors Inspect Records and Documents

question 40

Multiple Choice

Why do auditors inspect records and documents?

• A) To check the dates of transactions
• B) For evidence that management have authorised significant purchases
• C) To check that a transaction occurred
• D) All of the above

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Definitions:

Flexible Budget

A budget that adjusts or varies with changes in the volume of activity, revenue, or other factors influencing budgeting.

Static Budget

A financial plan that does not change or adjust over the period, regardless of any changes in business activity levels.

Flexible Budget

A budget that adjusts to changes in activity or production levels, allowing for more accurate budgeting.

Actual Results

The actual outcomes or figures achieved by a business, contrasting with forecasts or budgeted amounts.