Auditors Can Assess the Adequacy of Their Client's Closing Procedures

question 38

Multiple Choice

Auditors can assess the adequacy of their client's closing procedures by:

• A) Checking the accuracy of accruals calculations around year-end
• B) Looking at earnings trends to assess whether reported income is in line with similar periods in prior years
• C) a and b
• D) None of the above

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Definitions:

Deductibles

The amount paid out of pocket by the policyholder before an insurance company will pay any expenses.

Copayments

Fixed amounts paid by a consumer for healthcare services at the time of service, with the remainder covered by insurance.

Health Care Costs

The expenses associated with medical and health services, including treatment, medication, and hospitalization.

Preferred Provider Organizations

Health care organizations that offer members discounted rates for medical care from a network of preferred providers, while still covering some costs for care outside the network.